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“The road to innovation through DTM within the non-prime automotiveindustry is not a simple narrative about businesses simply needing to move beyond the comfort zone of paper.”

© eOriginal, Inc. www.eoriginal.com

Digital Transaction Management: The Road to Innovative Automotive Financing Services and Processes

Part Two

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Five Guidelines for Legal Enforceability

Courts have evaluated the enforceability of

digitally-executed financial assets and have provided five

guidelines that every organization should

follow:

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1. Issue User Names

Issue user names to authorized persons and require such persons to immediately change the default password upon log in to a unique and confidential password.

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2. Automate Login Password Change Requests

Automate login password change requests such that the password is used and changed only by the person issued the

user name associated with that password, and record the date,

time and terminal at which each password change

request is made.

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3. Present the Agreement for Review

Present the agreement for review and execution in a manner which allows the

person viewing the agreement to easily read the agreement in

full, and download it to personal electronic storage

and/or print it out, both before and after signing.

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4. Retain the Integrity of the Agreement

Retain the integrity of the agreement that is posted for execution to ensure that no

part of the agreement is changed after it is signed by

the first party and throughout its lifetime.

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5. Provide an Audit Trail

Provide an audit trail showing every time the agreement is accessed and/or signed, the

date, time and terminal at which agreement is accessed and/or signed, the user names of all

persons accessing and/or signing that agreement, any changes to

the agreement including deletions, copy print outs and electronic file transfers of the

agreement, and all other information regarding the

execution and maintenance of that agreement.

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eContract Process Flow Example- Vehicle Financing

Buyer/SellerAuto FinanceContract Docs

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The Laws that Allow for Digital Transactions

The Uniform Electronic Transaction Act (UETA) and the Federal Electronic Signatures in Global and National Commerce (ESIGN) Act empower electronic

documents and electronic signatures to be used with the same effect as paper documents and ink signatures.

Click here to read the entire article on Non-Prime Times

The official publication of the National Automotive Finance Association

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15th Anniversary

As we celebrated the 15th anniversary of the signing of the ESIGN Act, we appreciate

how far the industry has come on its acceptance of digital

transactions. Unfortunately, some of the same

misperceptions that we faced then are still alive today.

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Execution of a Contract

Over the past 15 years, the physicality of digital signature technology and the action of eSigning a contract has significantly transformed. In 2015, an eSignature should no longer be considered aphysical signature, but rather an execution of a contract within the signing ceremony.

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Going Beyond Simple Signature Capabilities

Technology has allowed industry players to go beyond just simple

signature capabilities. For example, customizable solutions on the market

allow for multimedia eSignature capture – providing an authenticated,

fully electronic agreement utilizing “signatures” consisting of voice, video or photo files, thumbprints, eye scans,

palm prints, biometric signature data and more.

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The Ideal Option

In many cases, this option is ideal for the non-prime

automotive industry because it allows for digital contracts

to be more secure for the lender and funder as the

industry continues to adopt end-to-end digital solutions

to help mitigate risk.

Demystifying eContracting for Auto Finance:Best Practices to Find a Solution that Improves Efficiency and

Accelerates Funding Click here to read more

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About UseOriginal, Inc., founded in 1996, is the standard for eAsset® Management services for any business that needs the ability to verify secure, legally compliant and enforceable electronic asset documentation.

eOriginal provides the maintenance, control and use of critical documents that have an intrinsic value, such as negotiable instruments, in a fully electronic environment, storing and protecting these assets throughout their entire lifecycle, including post signature execution. By maintaining the authenticity of original documents, the identity of the signatories, and the integrity of the content, eOriginal provides customers with the capability to realize the true benefits of fully electronic transactions and the resulting business process improvements.

For more information about us, please visit www.eoriginal.com or contact us at info@eoriginal.com

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