Written by: Haim Ravia, Dotan Hammer
A Magistrate Court decision from earlier this year has upheld the validity and enforceability of electronic signatures on promissory notes. According to the decision, collection proceedings may be initiated with the Israeli Enforcement and Collection Authority, even when the promissory note in question is signed electronically rather than with a handwritten signature.
This decision clarifies that the provisions of the Israeli Electronic Signature Law also apply to promissory notes, and such electronic signatures are valid subject to certain conditions.
As per the court, Section 2 of the Electronic Signature Law allows an electronic signature to be upheld even for documents that require a physical signature by law, provided the electronic signature fulfills the purposes of identification and “meeting of the minds.”
When an electronic signature fulfills the elements of assent and identification, it should not be denied recognition as a “distinct personal act,” which is the standard required by negotiable instrument case law.
According to the court, there is no difference between the personal act of a person signing physically by handwriting, seal, or another method recognized by law, and a person signing graphically on a computer screen using an electronic signature.
Concerns regarding duplication or alteration of the document were dismissed, given the existence of technologies that ensure the uniqueness and reliability of the digital signature.
Click here to read the Magistrate Court’s decision (in Hebrew).
