Electronic Signatures FAQ

FAQs

An electronic signature also known as eSignature is a way of legally signing or approving an electronic document or form replacing a hand signature.

E-SIGN defines an electronic signature as:

an electronic sound, symbol, or process,
attached to or logically associated with a contract or other record, and
executed or adopted by a person with the intent to sign the record. [15 USC § 7006(5)]

Are electronic signatures legally binding?

Yes, electronic signatures are legally binding. E-Sign Act and Illinois Electronic Commerce Act provides legal standing for electronic signatures and electronic records.

What is a digital signature?

A digital signature is a type of electronic signature, specifically defined by the Illinois Act as “a type of electronic signature that is created by transforming an electronic record and encrypting the resulting transformation with an asymmetric cryptosystem using the signer's private key and the signer's corresponding public key.”

A digital signature is, by definition, considered to be a security procedure [5 ILCS 175/15-10], but it is not the only acceptable security procedure that may be used to prove an electronic signature.

Are all electronic signatures digital signatures?

No, all electronic signature are not digital signatures as digital signatures are just one type of electronic signatures which follow a specific process as mentioned above but all digital signatures are electronic signatures.

Can electronic signature be used in every process or form?

It depends. Due to the validity of electronic signatures by law, they can be used in many processes and forms to replace wet / handwritten signatures with few exceptions when they are required by law, regulation, or other applicable policy or authority. You can refer to the below table for different levels of signatures accepted at NIU which is extracted from the draft policy currently in final review and submission phase and may change based on final approved version. Please note that electronic signatures may be implemented using various methodologies defined below depending on the associated risks that may include fraud, non-repudiation, and financial loss. The quality and security of the e-signature method should be commensurate with the risk and any requirements to assure the authenticity of the signer after a thorough risk assessment performed by the responsible Data Trustee and Data Custodian.

Levels	Risk	Authentication	Assurance Level	Recommendation	Use Case
Level 1	None to Low	NIU Account IDs and passwords are not required for authentication, but a signer's identity could be authenticated using a government-issued identification document.	Little or no confidence in the asserted identity's validity	Basic Electronic Signature - A signatory clicks a checkbox in an electronic agreement to signify agreement or approval	This is appropriate for low-risk transactions. E.g. Basic form submissions without legal implications
Level 2	Low to Medium	NIU Account IDs and passwords are required for authentication to an electronic form or document, after which a signatory may click on a checkbox to signify agreement or approval.	Sufficient confidence in the asserted identity's validity	Electronic Signature NIU Authentication with logging of signed in user and time stamp of signature	This is the most common use case appropriate for individuals within the NIU community. E.g. Most internal process flows, forms and approvals
Level 3	Medium to High	NIU Account IDs and passwords are required to authenticate to an established Electronic Signature Service (e.g. DocuSign, Adobe Sign etc.)	High confidence in the asserted identity's validity	Electronic Signature using established Electronic Signature Service (e.g. DocuSign, Adobe Sign etc.)	This is required in transactions involving external parties who doesn't have NIU credentials. E.g. contracts involving external vendors
Level 4	High	NIU Account IDs and passwords or approved Digital certificates are required to authenticate to a digital signature solution that provides encryption and nonrepudiation for selected electronic documents.	High confidence in the asserted identity's validity	Digital Signature, or other secure electronic signatures under the ECSA.	This is required in the smaller set of transactions where signature nonrepudiation is required by law. E.g. Transactions involving sending/signing any documents that are going to the European Union
Level 5	Very High	A document is required to be printed and an individual must provide an original signature in ink.	Very high confidence in the asserted identity's validity	Handwritten Signature	This is required in the smaller set of transactions where Illinois law or administrative codes require original inked signatures. E.g. Negotiable instruments and other instruments of title where possession confers title

Should I use digital signatures for all electronic signatures?

No, you are not required to use digital signatures for all scenarios requiring electronic signatures.

How to comply with electronic signature requirements?

When implementing an electronic or digital signature process, all applicable laws, rules, regulations, and NIU policies and procedures must be followed. In addition, the transactions should comply with these requirements:

Electronic Signatures:

The signer must perform an action to signify agreement or approval, such as clicking a checkbox, typing their name into a text box, or importing a graphic representation of a handwritten signature.
Please note that checkboxes alone may not be sufficient when it is necessary to verify the electronic signature or transaction’s execution.
The signer’s first and last name must be visible and legible below the electronic signature.
The time and date of the electronic signature must be captured, stored, and available for retrieval along with the electronic record.
Under the ECSA, the State of Illinois may establish minimum security requirements for the use of electronic records and signatures at State Agencies, like NIU for these purposes. As of the original date of this policy, the State has not adopted such minimum-security requirements. If such minimum-security requirements are established, then they must be followed for the use of electronic signatures at NIU.

Digital Signatures, or other “secure electronic signatures”:

As a subset of electronic signatures, non-repudiated and encrypted digital signatures will use a digital signature software application and digital certificates that has yet to be purchased or implemented. Until this is available, any signature that requires this level of legal assurance or poses a high risk to NIU will continue to use handwritten signatures.
Under the ECSA, the State of Illinois has established minimum security requirements for the use of digital signatures and secure electronic signatures at State Agencies, like NIU for these purposes. The Illinois Department of Innovation & Technology asserts that, by Legislative directive, it is the sole source of digital certificates for State of Illinois agencies, boards, commissions, universities and those who do business with them. When digital signatures or other secure electronic signatures are available at NIU, the University must follow the State-established minimum-security requirements for such digital signatures or other secure electronic signatures.