Michigan eSignature Act and Law

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Michigan is not far behind the rest of the states that have adopted business in the format of electronic documents. In the state, you can enter into transactions and conduct transactions in the framework of electronic document management, which is much faster and more convenient than paperwork. All transactions are subject to the laws of the United States and the state in particular.

The legality of DigiSigner’s eSignature in Michigan

DigiSigner online service allows you to get rid of paper documents and look for new partners and customers even on other continents. Using the service, you can put electronic signatures in documents, send them to partners and customers, as well as save the documentation in cloud storages.

Upload the desired document via the Upload button, or select from the Dropbox cloud or Google Drive. You can immediately sign your name by clicking Sign or send to the second side of the agreement by clicking Send for signing.

If you sign the first one, select a place in the document and then the format: painting with a mouse or touchpad, text, ready scan or webcam image. If you are expecting a second-party signature, the desired document will appear in the Waiting for me folder.

You can create templates in which your name and title will be indicated. Each time you sign a document, you only need to specify the date. This is convenient when working with a large number of documents. It is convenient to follow the process of signing by other participants in the section Waiting for others.

The technologies that DigiSigner uses comply with all the requirements of the state of Michigan and guarantee full legality if the second party agrees to keep documents in electronic form. Documents certified in the service are fully legally binding.

Michigan Electronic Signature Law

Michigan, like many other states, passed the Uniform Electronic Transaction Act – UETA. It governs the use of electronic documentation but does not oblige public institutions and private organizations to use electronic documents only. The purpose of UETA is to clarify the definition of the documentation itself in this form.

Key points:

  • any signature or record cannot lose its legal force only for the reason that it is made in electronic format;
  • if an electronic signature was used in the formation of the contract, it does not lose legal force and the need for compulsory execution;
  • in cases where the law requires a signature, the electronic details satisfy this requirement;
  • If the law requires a written signature of the document, the electronic details also satisfy this requirement.

The signature itself is not part of the transaction. According to the laws of Michigan, the purpose of electronic signatures is as follows:

  • certificate: the signature certifies the authenticity of the document by linking it with the signer;
  • Ceremony: the signing process draws attention to the fact that the document will have a valid legal weight, and therefore prevents the acceptance of obligations by accident;
  • approval: the signature expresses the intention, approval or permission of the signer, gives legal weight to the document and the responsibility of the signer.

For the document to have full legal force, the parties must first agree that all transactions will be electronic. If one of the transactions has already passed in electronic form, this does not mean that the parties have agreed to keep all documents in electronic form.

Peculiarities of Michigan eSignature Law

The Electronic Signature Act for Global and National Trade in Michigan entered into force in 2001. He refers to the standards of high-quality electronic signatures provided by the Administrative Office. After checking the security requirements, companies must indicate whether a signature is required in documents of this type. If required, consider the following amendments to Michigan law:

  • type of signature required;
  • the format and type of process during which the signature is attached to the document;
  • the identity of the criteria by which the third party involved in the signing process is evaluated, for example, a trustee.

The company should control the process of checking the security of the documentation. This is done to ensure that the documents are adequately stored, their integrity and confidentiality are ensured, as well as to be able to audit the documentation at any time.

Functions and Goals of Electronic Signatures

The law does not put forward requirements for specific technologies that need to be used to sign documents electronically. But according to the law, electronic signatures should provide:

  • absolute data integration;
  • attribution – the advantage is given to the signature of the partner, not his representative, in other words, the advantage of the third party is less;
  • the fact of signing documents by man;
  • reliability – proof that the contents did not change after setting the details.
  • If a company obeys the laws of Michigan or state law, it is impossible to complicate the procedure for regulating electronic document management.

In order for a ready signature to have full legal force, it must meet the following requirements:

  • password-based signature is used in combination with electronic paintings and seals;
  • ensuring the authentication of electronic signature technology;
  • a unique signature for a person;
  • confirmation of the person’s intent to be bound to a specific document and to undertake obligations;
  • full awareness of the signers of this process.

The law may recommend the use of separate encryption standards but does not require the use of them. If it is possible to verify the authenticity and signing technology, the encryption standard will be considered legal.

Recent changes in state of Michigan Electronic Signature Law

Previously, members of the Michigan Homeowners Association were not given ample opportunity to amend declarations or restrictive agreements. The legislation required that more than 2/3 of physical signatures be collected for making and approving edits. Considering that the total number of lots in the Association is more than 8,000, this task was physically difficult.

Following MCL 450.835a, since 2017, owners are allowed to confirm, cancel or modify restrictive conditions in the Association, either partially or entirely, using electronic signatures. Also, the number of participants for decision making is now reduced to 250, which significantly facilitates the introduction of up-to-date edits to restrictive documentation.

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