Are electronic signatures legal in Iowa?

Iowa Code chapter 554D in brief

Iowa passed its version of the Uniform Electronic Transactions Act in 2000 (2000 Acts, chapter 1189) and reworked it in 2004, when the Legislature repealed several of the original sections (2004 Acts, chapter 1067). The chapter is titled "Electronic Transactions — Computer Agreements" because it has a second, unusual part, covered below.

The same section says a record, signature or contract can't be denied legal effect just because it's electronic. An electronic signature is an electronic sound, symbol or process attached to or logically associated with a record and adopted with intent to sign (§ 554D.103(8)). Evidence can't be excluded just because it's electronic (§ 554D.115).

Both sides must agree

Chapter 554D applies only to transactions between parties who have each agreed to deal electronically, judged from context and conduct (§ 554D.106(2)). A party can refuse to do the next transaction electronically, and that right can't be waived (§ 554D.106(3)). When a law requires information in writing, an electronic record satisfies it only if the recipient can print or store it (§ 554D.110(1)).

What's excluded in Iowa

• Wills, codicils and testamentary trusts (§ 554D.104(2)(a)).
• The Uniform Commercial Code (chapter 554), except Article 2 on sales, Article 13 on leases, and § 554.1306 (§ 554D.104(2)(b)).

Iowa numbers its leases article 13 rather than 2A, which is why the list looks different from other states. Any transaction under the act is also subject to other substantive law (§ 554D.104(3)), so check whether the law behind a document sets its own signing or delivery rules.

Iowa's computer-agreement rule

Subchapter II has one section, § 554D.125. If a computer information agreement picks the law of a state that enacted the Uniform Computer Information Transactions Act, or a substantially similar law, that choice-of-law clause is voidable. The agreement is then read under Iowa law when the party resisting the clause lives in Iowa or has its principal place of business there. It mostly matters for software and data licenses, not everyday contracts.

Iowa and the federal ESIGN Act

Chapter 554D works alongside the federal ESIGN Act, which covers e-signatures in interstate commerce (15 U.S.C. § 7001) and lets a state UETA displace parts of it (§ 7002). ESIGN keeps two things either way: its notice exceptions, such as utility shutoffs and primary-residence foreclosure or eviction notices (§ 7003), and the consumer consent steps for required written information. The guide to e-signature law goes deeper.

Notarization in Iowa

If a law requires notarization, the notary's electronic signature with the required information satisfies it (§ 554D.113). Since a 2019 law (2019 Acts, chapter 44), Iowa Code § 9B.14A lets a notary perform a notarial act for a remotely located individual who appears by live audio and video. See remote online notarization. SignMaster doesn't notarize documents.

Practical notes

• Record the agreement. A clause in your contract saying both parties agree to sign electronically is the simplest way to show the agreement § 554D.106 requires.
• Keep the final version. An electronic record meets a retention rule if it accurately reflects the final document and stays accessible (§ 554D.114).

Signers can download the completed PDF from SignMaster and keep it, and a certificate of completion at the end records each timestamped event. Consent comes before any signature: signers agree to sign electronically, and SignMaster logs that agreement.