On Tuesday, June 2nd, the Executive submitted to the Chamber of Deputies a bill aimed at amending Law No. 19,799 on electronic documents, electronic signatures and certification services, along with other related legal statutes.
The bill seeks to modernize the regulatory framework applicable to the advanced electronic signature (FEA, for its initials in Spanish) and reduce physical-presence requirements, facilitating digital transactions, lowering associated costs, and strengthening the legal certainty of electronic documents.
The initiative is structured around three main pillars:
The first pillar is the facilitation of procedures and the reduction of in-person notarization when its sole purpose is to authorize or certify signatures. This requirement may be fulfilled through FEA with time-stamping, facilitating the execution of instruments and contracts remotely, for the benefit of micro, small and medium-sized enterprises, as well as e-commerce users.
However, the proposal does not apply to those actions where the law requires the substantive involvement of notaries and attesting officers, excluding, among others, personal appearance, background verification, or compliance with other legal requirements, such as the payment of certain taxes.
The second pillar is the strengthening of the legal framework of FEA in the private sphere, incorporating two new concepts: “time-mark” and “time-stamping” as mechanisms to reliably determine the moment of execution of electronic documents through the intervention of an accredited service provider.
Finally, it focuses on strengthening legal certainty and the probative value of electronic documents, recognizing their value in accordance with general rules and incorporating criteria related to the certification of a certain date. In addition, the bill introduces a specific verification mechanism for cases in which electronic documents executed with FEA are challenged in judicial proceedings, through the intervention of certification service providers.
The initiative also seeks to incorporate other complementary provisions.
First, it reaffirms the equivalence between electronic documents executed with FEA and those in paper format, expressly regulating their probative value regarding their date, which will constitute conclusive evidence when time-stamping is applied.
Second, it expressly provides that, for an electronic document to qualify as and produce the effects of a public instrument, it must necessarily be executed with FEA and include a time-mark.
Finally, the bill aims to digitalize negotiable instruments, such as bills of exchange and promissory notes, allowing these instruments to be issued, transferred, and protested in electronic form, provided that they are executed with FEA and include time-stamping. These instruments are also granted executory status without the need for prior acknowledgment, equating them, in terms of enforceability, to those in paper format.
Currently, the bill is undergoing its first constitutional legislative stage before the Economy Committee of the Chamber of Deputies and, given its “simple urgency” status, it must be discussed within a maximum period of 30 days.
For questions or further information on this matter, please contact our Corporate team.