SECTIONS 1619-1633 - California Statutes

CIVIL CODE

SECTION 1619-1633

1619. A contract is either express or implied.

1620. An express contract is one, the terms of which are stated in
words.

1621. An implied contract is one, the existence and terms of which
are manifested by conduct.

1622. All contracts may be oral, except such as are specially
required by statute to be in writing.

1623. Where a contract, which is required by law to be in writing,
is prevented from being put into writing by the fraud of a party
thereto, any other party who is by such fraud led to believe that it
is in writing, and acts upon such belief to his prejudice, may
enforce it against the fraudulent party.

1624. (a) The following contracts are invalid, unless they, or some
note or memorandum thereof, are in writing and subscribed by the
party to be charged or by the party's agent:
(1) An agreement that by its terms is not to be performed within a
year from the making thereof.
(2) A special promise to answer for the debt, default, or
miscarriage of another, except in the cases provided for in Section
2794.
(3) An agreement for the leasing for a longer period than one
year, or for the sale of real property, or of an interest therein;
such an agreement, if made by an agent of the party sought to be
charged, is invalid, unless the authority of the agent is in writing,
subscribed by the party sought to be charged.
(4) An agreement authorizing or employing an agent, broker, or any
other person to purchase or sell real estate, or to lease real
estate for a longer period than one year, or to procure, introduce,
or find a purchaser or seller of real estate or a lessee or lessor of
real estate where the lease is for a longer period than one year,
for compensation or a commission.
(5) An agreement that by its terms is not to be performed during
the lifetime of the promisor.
(6) An agreement by a purchaser of real property to pay an
indebtedness secured by a mortgage or deed of trust upon the property
purchased, unless assumption of the indebtedness by the purchaser is
specifically provided for in the conveyance of the property.
(7) A contract, promise, undertaking, or commitment to loan money
or to grant or extend credit, in an amount greater than one hundred
thousand dollars ($100,000), not primarily for personal, family, or
household purposes, made by a person engaged in the business of
lending or arranging for the lending of money or extending credit.
For purposes of this section, a contract, promise, undertaking or
commitment to loan money secured solely by residential property
consisting of one to four dwelling units shall be deemed to be for
personal, family, or household purposes.
(b) Notwithstanding paragraph (1) of subdivision (a):
(1) An agreement or contract that is valid in other respects and
is otherwise enforceable is not invalid for lack of a note,
memorandum, or other writing and is enforceable by way of action or
defense, provided that the agreement or contract is a qualified
financial contract as defined in paragraph (2) and (A) there is, as
provided in paragraph (3), sufficient evidence to indicate that a
contract has been made or (B) the parties thereto by means of a prior
or subsequent written contract, have agreed to be bound by the terms
of the qualified financial contract from the time they reached
agreement (by telephone, by exchange of electronic messages, or
otherwise) on those terms.
(2) For purposes of this subdivision, a "qualified financial
contract" means an agreement as to which each party thereto is other
than a natural person and that is any of the following:
(A) For the purchase and sale of foreign exchange, foreign
currency, bullion, coin or precious metals on a forward, spot,
next-day value or other basis.
(B) A contract (other than a contract for the purchase of a
commodity for future delivery on, or subject to the rules of, a
contract market or board of trade) for the purchase, sale, or
transfer of any commodity or any similar good, article, service,
right, or interest that is presently or in the future becomes the
subject of a dealing in the forward contract trade, or any product or
byproduct thereof, with a maturity date more than two days after the
date the contract is entered into.
(C) For the purchase and sale of currency, or interbank deposits
denominated in United States dollars.
(D) For a currency option, currency swap, or cross-currency rate
swap.
(E) For a commodity swap or a commodity option (other than an
option contract traded on, or subject to the rules of a contract
market or board of trade).
(F) For a rate swap, basis swap, forward rate transaction, or an
interest rate option.
(G) For a security-index swap or option, or a security or
securities price swap or option.
(H) An agreement that involves any other similar transaction
relating to a price or index (including, without limitation, any
transaction or agreement involving any combination of the foregoing,
any cap, floor, collar, or similar transaction with respect to a
rate, commodity price, commodity index, security or securities price,
security index, other price index, or loan price).
(I) An option with respect to any of the foregoing.
(3) There is sufficient evidence that a contract has been made in
any of the following circumstances:
(A) There is evidence of an electronic communication (including,
without limitation, the recording of a telephone call or the tangible
written text produced by computer retrieval), admissible in evidence
under the laws of this state, sufficient to indicate that in the
communication a contract was made between the parties.
(B) A confirmation in writing sufficient to indicate that a
contract has been made between the parties and sufficient against the
sender is received by the party against whom enforcement is sought
no later than the fifth business day after the contract is made (or
any other period of time that the parties may agree in writing) and
the sender does not receive, on or before the third business day
after receipt (or the other period of time that the parties may agree
in writing), written objection to a material term of the
confirmation. For purposes of this subparagraph, a confirmation or an
objection thereto is received at the time there has been an actual
receipt by an individual responsible for the transaction or, if
earlier, at the time there has been constructive receipt, which is
the time actual receipt by that individual would have occurred if the
receiving party, as an organization, had exercised reasonable
diligence. For the purposes of this subparagraph, a "business day" is
a day on which both parties are open and transacting business of the
kind involved in that qualified financial contract that is the
subject of confirmation.
(C) The party against whom enforcement is sought admits in its
pleading, testimony, or otherwise in court that a contract was made.
(D) There is a note, memorandum, or other writing sufficient to
indicate that a contract has been made, signed by the party against
whom enforcement is sought or by its authorized agent or broker.
For purposes of this paragraph, evidence of an electronic
communication indicating the making in that communication of a
contract, or a confirmation, admission, note, memorandum, or writing
is not insufficient because it omits or incorrectly states one or
more material terms agreed upon, as long as the evidence provides a
reasonable basis for concluding that a contract was made.
(4) For purposes of this subdivision, the tangible written text
produced by telex, telefacsimile, computer retrieval, or other
process by which electronic signals are transmitted by telephone or
otherwise shall constitute a writing, and any symbol executed or
adopted by a party with the present intention to authenticate a
writing shall constitute a signing. The confirmation and notice of
objection referred to in subparagraph (B) of paragraph (3) may be
communicated by means of telex, telefacsimile, computer, or other
similar process by which electronic signals are transmitted by
telephone or otherwise, provided that a party claiming to have
communicated in that manner shall, unless the parties have otherwise
agreed in writing, have the burden of establishing actual or
constructive receipt by the other party as set forth in subparagraph
(B) of paragraph (3).
(c) This section does not apply to leases subject to Division 10
(commencing with Section 10101) of the Commercial Code.

1624.5. (a) Except in the cases described in subdivision (b), a
contract for the sale of personal property is not enforceable by way
of action or defense beyond five thousand dollars ($5,000) in amount
or value of remedy unless there is some record, as defined in
subdivision (m) of Section 1633.2, but solely to the extent permitted
by applicable law, that indicates that a contract for sale has been
made between the parties at a defined or stated price, reasonably
identifies the subject matter, and is signed, including by way of
electronic signature, as defined in subdivision (h) of Section
1633.2, but solely to the extent permitted by applicable law, by the
party against whom enforcement is sought or by his or her authorized
agent.
(b) Subdivision (a) does not apply to contracts governed by the
Commercial Code, including contracts for the sale of goods (Section
2201 of the Commercial Code), contracts for the sale of securities
(Section 8113 of the Commercial Code), and security agreements
(Sections 9201 and 9203 of the Commercial Code).
(c) Subdivision (a) does not apply to a qualified financial
contract as that term is defined in paragraph (2) of subdivision (b)
of Section 1624 if either of the following exists:
(1) There is, as provided in paragraph (3) of subdivision (b) of
Section 1624, sufficient evidence to indicate that a contract has
been made.
(2) The parties thereto, by means of a prior or subsequent written
contract, have agreed to be bound by the terms of the qualified
financial contract from the time they reach agreement (by telephone,
by exchange of electronic messages, or otherwise) on those terms.

1625. The execution of a contract in writing, whether the law
requires it to be written or not, supersedes all the negotiations or
stipulations concerning its matter which preceded or accompanied the
execution of the instrument.

1626. A contract in writing takes effect upon its delivery to the
party in whose favor it is made, or to his agent.

1627. The provisions of the Chapter on Transfers in General,
concerning the delivery of grants, absolute and conditional, apply to
all written contracts.

1628. A corporate or official seal may be affixed to an instrument
by a mere impression upon the paper or other material on which such
instrument is written.

1629. All distinctions between sealed and unsealed instruments are
abolished.

1630. Except as provided in Section 1630.5, a printed contract of
bailment providing for the parking or storage of a motor vehicle
shall not be binding, either in whole or in part, on the vehicle
owner or on the person who leaves the vehicle with another, unless
the contract conforms to the following:
(a) "This contract limits our liability--read it" is printed at
the top in capital letters of 10-point type or larger.
(b) All the provisions of the contract are printed legibly in
eight-point type or larger.
(c) Acceptance of benefits under a contract included within the
provisions of this section shall not be construed a waiver of this
section, and it shall be unlawful to issue such a contract on
condition that provisions of this section are waived.
A copy of the contract printed in large type, in an area at least
17 by 22 inches, shall be posted in a conspicuous place at each
entrance of the parking lot.
Nothing in this section shall be construed to prohibit the
enactment of city ordinances on this subject that are not less
restrictive, and such enactments are expressly authorized.

1630.5. The provisions of any contract of bailment for the parking
or storage of a motor vehicle shall not exempt the bailee from
liability, either in whole or in part, for the theft of any motor
vehicle, when such motor vehicle is parked or stored with such
bailee, and the keys are required by such bailee to be left in the
parked or stored vehicle.

1631. Every person in this State who sells machinery used or to be
used for mining purposes shall, at the time of sale, give to the
buyer a bill of sale for the machinery. The seller shall keep a
written record of the sale, giving the date thereof, describing the
machinery, and showing the name and address of the buyer, and the
buyer, if in this State, shall keep a record of his purchase, giving
the name and address of the seller, describing the machinery, and
showing the date of the purchase.

1632. (a) The Legislature hereby finds and declares all of the
following:
(1) This section was enacted in 1976 to increase consumer
information and protections for the state's sizeable and growing
Spanish-speaking population.
(2) Since 1976, the state's population has become increasingly
diverse and the number of Californians who speak languages other than
English as their primary language at home has increased
dramatically.
(3) According to data from the United States Census of 2000, of
the more than 12 million Californians who speak a language other than
English in the home, approximately 4.3 million speak an Asian
dialect or another language other than Spanish. The top five
languages other than English most widely spoken by Californians in
their homes are Spanish, Chinese, Tagalog, Vietnamese, and Korean.
Together, these languages are spoken by approximately 83 percent of
all Californians who speak a language other than English in their
homes.
(b) Any person engaged in a trade or business who negotiates
primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean, orally
or in writing, in the course of entering into any of the following,
shall deliver to the other party to the contract or agreement and
prior to the execution thereof, a translation of the contract or
agreement in the language in which the contract or agreement was
negotiated, which includes a translation of every term and condition
in that contract or agreement:
(1) A contract or agreement subject to the provisions of Title 2
(commencing with Section 1801) of, and Chapter 2b (commencing with
Section 2981) and Chapter 2d (commencing with Section 2985.7) of
Title 14 of, Part 4 of Division 3.
(2) A loan or extension of credit secured other than by real
property, or unsecured, for use primarily for personal, family or
household purposes.
(3) A lease, sublease, rental contract or agreement, or other term
of tenancy contract or agreement, for a period of longer than one
month, covering a dwelling, an apartment, or mobilehome, or other
dwelling unit normally occupied as a residence.
(4) Notwithstanding paragraph (2), a loan or extension of credit
for use primarily for personal, family or household purposes where
the loan or extension of credit is subject to the provisions of
Article 7 (commencing with Section 10240) of Chapter 3 of Part 1 of
Division 4 of the Business and Professions Code, or Division 7
(commencing with Section 18000), or Division 9 (commencing with
Section 22000) of the Financial Code.
(5) Notwithstanding paragraph (2), a reverse mortgage as described
in Chapter 8 (commencing with Section 1923) of Title 4 of Part 4 of
Division 3.
(6) A contract or agreement, containing a statement of fees or
charges, entered into for the purpose of obtaining legal services,
when the person who is engaged in business is currently licensed to
practice law pursuant to Chapter 4 (commencing with Section 6000) of
Division 3 of the Business and Professions Code.
(7) A foreclosure consulting contract subject to Article 1.5
(commencing with Section 2945) of Chapter 2 of Title 14 of Part 4 of
Division 3.
(c) Notwithstanding subdivision (b), for a loan subject to this
part and to Article 7 (commencing with Section 10240) of Chapter 3 of
Part 1 of Division 4 of the Business and Professions Code, the
delivery of a translation of the statement to the borrower required
by Section 10240 of the Business and Professions Code in any of the
languages specified in subdivision (b) in which the contract or
agreement was negotiated, is in compliance with subdivision (b).
(d) At the time and place where a lease, sublease, or rental
contract or agreement described in subdivision (b) is executed,
notice in any of the languages specified in subdivision (b) in which
the contract or agreement was negotiated shall be provided to the
lessee or tenant.
(e) Provision by a supervised financial organization of a
translation of the disclosures required by Regulation M or Regulation
Z, and, if applicable, Division 7 (commencing with Section 18000) or
Division 9 (commencing with Section 22000) of the Financial Code in
any of the languages specified in subdivision (b) in which the
contract or agreement was negotiated, prior to the execution of the
contract or agreement, shall also be deemed in compliance with the
requirements of subdivision (b) with regard to the original contract
or agreement.
(1) "Regulation M" and "Regulation Z" mean any rule, regulation,
or interpretation promulgated by the Board of Governors of the
Federal Reserve System and any interpretation or approval issued by
an official or employee duly authorized by the board to issue
interpretations or approvals dealing with, respectively, consumer
leasing or consumer lending, pursuant to the Federal Truth in Lending
Act, as amended (15 U.S.C. Sec. 1601 et seq.).
(2) As used in this section, "supervised financial organization"
means a bank, savings association as defined in Section 5102 of the
Financial Code, credit union, or holding company, affiliate, or
subsidiary thereof, or any person subject to Article 7 (commencing
with Section 10240) of Chapter 3 of Part 1 of Division 4 of the
Business and Professions Code, or Division 7 (commencing with Section
18000) or Division 9 (commencing with Section 22000) of the
Financial Code.
(f) At the time and place where a contract or agreement described
in paragraph (1) or (2) of subdivision (b) is executed, a notice in
any of the languages specified in subdivision (b) in which the
contract or agreement was negotiated shall be conspicuously displayed
to the effect that the person described in subdivision (b) is
required to provide a contract or agreement in the language in which
the contract or agreement was negotiated, or a translation of the
disclosures required by law in the language in which the contract or
agreement was negotiated, as the case may be. If a person described
in subdivision (b) does business at more than one location or branch,
the requirements of this section shall apply only with respect to
the location or branch at which the language in which the contract or
agreement was negotiated is used.
(g) The term "contract" or "agreement," as used in this section,
means the document creating the rights and obligations of the parties
and includes any subsequent document making substantial changes in
the rights and obligations of the parties. The term "contract" or
"agreement" does not include any subsequent documents authorized or
contemplated by the original document such as periodic statements,
sales slips or invoices representing purchases made pursuant to a
credit card agreement, a retail installment contract or account or
other revolving sales or loan account, memoranda of purchases in an
add-on sale, or refinancing of a purchase as provided by, or pursuant
to, the original document.
The term "contract" or "agreement" does not include a home
improvement contract as defined in Sections 7151.2 and 7159 of the
Business and Professions Code, nor does it include plans,
specifications, description of work to be done and materials to be
used, or collateral security taken or to be taken for the retail
buyer's obligation contained in a contract for the installation of
goods by a contractor licensed pursuant to Chapter 9 (commencing with
Section 7000) of Division 3 of the Business and Professions Code, if
the home improvement contract or installation contract is otherwise
a part of a contract described in subdivision (b).
Matters ordinarily incorporated by reference in contracts or
agreements as described in paragraph (3) of subdivision (b),
including, but not limited to, rules and regulations governing a
tenancy and inventories of furnishings to be provided by the person
described in subdivision (b), are not included in the term "contract"
or "agreement."
(h) This section does not apply to any person engaged in a trade
or business who negotiates primarily in a language other than
English, as described by subdivision (b), if the party with whom he
or she is negotiating is a buyer of goods or services, or receives a
loan or extension of credit, or enters an agreement obligating
himself or herself as a tenant, lessee, or sublessee, or similarly
obligates himself or herself by contract or lease, and the party
negotiates the terms of the contract, lease, or other obligation
through his or her own interpreter.
As used in this subdivision, "his or her own interpreter" means a
person, not a minor, able to speak fluently and read with full
understanding both the English language and any of the languages
specified in subdivision (b) in which the contract or agreement was
negotiated, and who is not employed by, or whose service is made
available through, the person engaged in the trade or business.
(i) Notwithstanding subdivision (b), a translation may retain the
following elements of the executed English-language contract or
agreement without translation: names and titles of individuals and
other persons, addresses, brand names, trade names, trademarks,
registered service marks, full or abbreviated designations of the
make and model of goods or services, alphanumeric codes, numerals,
dollar amounts expressed in numerals, dates, and individual words or
expressions having no generally accepted non-English translation. It
is permissible, but not required, that this translation be signed.
(j) The terms of the contract or agreement which is executed in
the English language shall determine the rights and obligations of
the parties. However, the translation of the contract or the
disclosures required by subdivision (e) in any of the languages
specified in subdivision (b) in which the contract or agreement was
negotiated shall be admissible in evidence only to show that no
contract was entered into because of a substantial difference in the
material terms and conditions of the contract and the translation.
(k) Upon a failure to comply with the provisions of this section,
the person aggrieved may rescind the contract or agreement in the
manner provided by this chapter. When the contract for a consumer
credit sale or consumer lease which has been sold and assigned to a
financial institution is rescinded pursuant to this subdivision, the
consumer shall make restitution to and have restitution made by the
person with whom he or she made the contract, and shall give notice
of rescission to the assignee. Notwithstanding that the contract was
assigned without recourse, the assignment shall be deemed rescinded
and the assignor shall promptly repurchase the contract from the
assignee.

1632.5. (a) A supervised financial organization that negotiates
primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean,
whether orally or in writing, in the course of entering into a
contract or agreement for a loan or extension of credit secured by
residential real property, shall deliver to the other party to that
contract or agreement prior to the execution of the contract or
agreement the form described in subdivision (i) for that language.
(b) For purposes of this section:
(1) "Contract" or "agreement" shall have the same meaning as
defined in subdivision (g) of Section 1632.
(2) "Supervised financial organization" means a bank, savings
association, as defined in Section 5102 of the Financial Code, credit
union, or holding company, affiliate, or subsidiary thereof, or any
person subject to Division 7 (commencing with Section 18000),
Division 9 (commencing with Section 22000), or Division 20
(commencing with Section 50000) of the Financial Code.
(c) (1) With respect to a contract or agreement for a loan or
extension of credit secured by residential real property as described
in subdivision (a), a supervised financial organization that
complies with this section shall be deemed in compliance with Section
1632.
(2) A supervised financial organization that complies with Section
1632, with respect to a contract or agreement for a loan or
extension of credit secured by residential real property as described
in subdivision (a), shall be deemed in compliance with this section.
(d) The supervised financial organization shall provide the form
described in subdivision (i) to the borrower no later than three
business days after receipt of the written application, and if any of
the loan terms summarized materially change after provision of the
translated form but prior to consummation of the loan, the supervised
financial organization shall provide an updated version of the
translated form prior to consummation of the loan.
(e) (1) This section does not apply to a supervised financial
organization that negotiates primarily in a language other than
English, as described by subdivision (a), if the party with whom the
supervised financial organization is negotiating, negotiates the
terms of the contract through his or her own interpreter.
(2) For purposes of this subdivision, "his or her own interpreter"
means a person, not a minor, able to speak fluently and read with
full understanding both the English language and one of the languages
specified in subdivision (a) that is the language in which the
contract was negotiated, who is not employed by, and whose services
are not made available through, the person engaged in the trade or
business.
(f) Notwithstanding subdivision (a), a translated form may retain
any of the following elements of the executed English language
contract or agreement without translation:
(1) Names and titles of individuals and other persons.
(2) Addresses, brand names, trade names, trademarks, or registered
service marks.
(3) Full or abbreviated designations of the make and model of
goods or services.
(4) Alphanumeric codes.
(5) Individual words or expressions having no generally accepted
non-English translation.
(g) The terms of the contract or agreement which is executed in
the English language shall determine the rights and obligations of
the parties. However, the translation of the form described in
subdivision (i) and required by subdivision (a) shall be admissible
in evidence only to show that no contract or agreement was entered
into because of a substantial difference in the material terms and
conditions of the contract or agreement and the prior translated form
provided to the borrower.
(h) (1) A licensing agency may, by order, after appropriate notice
and opportunity for hearing, levy administrative penalties against a
supervised financial organization that violates any provision of
this section, and the supervised financial organization may be liable
for administrative penalties, up to the amounts of two thousand five
hundred dollars ($2,500) for the first violation, five thousand
dollars ($5,000) for the second violation, and ten thousand dollars
($10,000) for each subsequent violation. Except for licensing
agencies exempt from the provisions of the Administrative Procedure
Act, any hearing shall be held in accordance with the Administrative
Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code), and the licensing
agency shall have all the powers granted under that act.
(2) A licensing agency may exercise any and all authority and
powers available to it under any other provisions of law to
administer and enforce this section, including, but not limited to,
investigating and examining the licensed person's books and records,
and charging and collecting the reasonable costs for these
activities. The licensing agency shall not charge a licensed person
twice for the same service. Any civil, criminal, and administrative
authority and remedies available to the licensing agency pursuant to
its licensing law may be sought and employed in any combination
deemed advisable by the licensing agency to enforce the provisions of
this section.
(3) Any supervised financial organization that violates any
provision of this section shall be deemed to have violated its
licensing law.
(4) Nothing in this section shall be construed to impair or impede
the Attorney General from bringing an action to enforce this
division.
(i) The Department of Corporations and the Department of Financial
Institutions shall create a form to be made available in each of the
languages set forth in subdivision (a) for use by a supervised
financial organization to summarize the terms of a mortgage loan
pursuant to subdivision (a). In creating the form, the Department of
Corporations and the Department of Financial Institutions may use as
guidance the United States Department of Housing and Urban
Development's Good Faith Estimate disclosure form.
(j) This section shall not apply to federally chartered banks,
credit unions, savings banks, or thrifts.
(k) Except as otherwise provided in subdivision (h), this section
shall not be construed to create or enhance any claim, right of
action, or civil liability that did not previously exist under state
law, or limit any claim, right of action, or civil liability that
otherwise exists under state law.
(l) An action against a supervised financial organization for a
violation of this section may only be brought by a licensing agency
or by the Attorney General.
(m) This section shall become operative beginning on July 1, 2010,
or 90 days following the issuance of a form by both the Department
of Corporations and the Department of Financial Institutions pursuant
to subdivision (i), whichever occurs later.

1633. (a) Notwithstanding any other provision of law, an
application by a prospective customer to enter into a brokerage
agreement with a broker-dealer, which application is transmitted
electronically and is accompanied by the prospective customer's
electronic signature or digital signature as described in
subdivisions (d), (e), (f), and (g), shall be deemed, upon acceptance
by the broker-dealer, to be a fully executed, valid, enforceable,
and irrevocable written contract, unless grounds exist which would
render any other contract invalid, unenforceable, or revocable.
(b) Nothing in this section abrogates or limits any existing law
that would otherwise apply to contracts governed by this section, or
any theory of liability or any remedy otherwise available at law.
(c) "Broker-dealer," for purposes of this section, means any
broker-dealer licensed pursuant to Part 3 (commencing with Section
25200) of Division 1 of Title 4 of the Corporations Code or exempted
from licensing pursuant thereto.
(d) "Electronic" means relating to technology having electrical,
digital, magnetic, wireless, optical, electromagnetic, or similar
capabilities.
(e) "Electronic record" means a record created, generated, sent,
communicated, received, or stored electronically.
(f) "Electronic signature" means an electronic sound, symbol, or
process attached to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the
electronic record.
(g) "Digital signature," for the purposes of this section, means
an electronic identifier, created by a computer, that is intended by
the party using it to have the same force and effect as the use of a
manual signature. The use of a digital signature shall have the same
force or effect as a manual signature if it embodies all of the
following attributes:
(1) It is unique to the person using it.
(2) It is capable of verification.
(3) It is under the sole control of the person using it.
(4) It is linked to data in a manner that if the data is changed,
the digital signature is invalidated.
(h) The use of an electronic signature or digital signature shall
have the same force or effect as a manual signature.
(i) The application that is transmitted electronically pursuant to
subdivision (a) shall comply with all applicable federal and state
securities laws and regulations relating to disclosures to
prospective customers. Unless those laws and regulations currently
require disclosures to be displayed or printed in bold, to be of
specific type or print size, and to be placed prominently at
specified locations within the application, the disclosures shall be
displayed prominently and printed in capital letters, in bold type
and displayed or printed immediately above the signature line.
Disclosures shall be written in plain English. The full text of the
disclosures shall be contained in the application as required by this
subdivision.
(j) Whenever a disclosure to a prospective customer is required
under federal or state law or regulation to be confirmed as having
been made, the application that is transmitted electronically
pursuant to subdivision (a) shall provide a means by which the
prospective customer shall confirm that he or she has read the
disclosure.