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Digital Signature And Electronic Authentication Law (SEAL) of 1998

SEAL was introduced to the US Senate, as S.1594, and was followed closely by H.R. 3472 which was introduced to the US House of Representatives. This Bill sought to update the Bank Protection Act of 1968 in regards to electronic authentication techniques by financial institutions and for other purposes. The SEAL law can be read here.

(f) DOCUMENT- The term `document' means any message, instrument, information, data, image, text, program, software, database, or the similar item, regardless of how created, if such item can be retrieved or displayed in a tangible form.

Sec 3(g):

(g) ELECTRONIC AUTHENTICATION- The term `electronic authentication' means a cryptographic or other secure electronic technique that allows the user of the technique--

(1) to authenticate the identity of or information associated with a sender of a document;

(2) to determine that a document was not altered, changed, or modified during its transmission to a recipient; or

(3) to verify that a document received was sent by the identified party claiming to be the sender.

Sec 6 of the Digital Signature And Electronic Authentication Law (SEAL). This section states the electronic authentication may be used if an agreement to use them was made by all parties.

(a) ELECTRONIC AUTHENTICATION OF DOCUMENTS, INFORMATION, AND IDENTITY-

(1) IN GENERAL- A financial institution may use electronic authentication in the conduct of its business if it has entered into an agreement regarding the use of electronic authentication with any counterparty, or if it has established a banking, financial, or transactional system using electronic authentication.