BALTIMORE – eOriginal, Inc., the digital transaction experts, today announced it has released a white paper titled, “Mitigating Risk Around High-Value Documents and Financial Assets.” The informative white paper highlights how companies executing digital contracts that represent financial value may be exposed to unnecessary and dangerous risks by not properly managing and preparing the assets for their post-signature life.
For financial assets in need of post-signature functions, such as the sale of a contract, collateralization, or securitization, eOriginal demonstrates that utilizing a signing platform without an eAsset®Management Solution presents untenable risk, which can and has resulted in the loss of funding during loan collateralization deals.
The white paper profiles a leading solar financing company who struggled with utilizing their digitally-signed solar contracts as collateral. Six months into working with a bank on a deal for a $40 million line of credit, the bank’s attorney realized that there were not unique and verifiable versions of the original contracts which the bank could control under the requirements of the Uniform Commercial Code (UCC).
Without Authoritative Copies of the documents, the bank did not have confidence that control of the documents was guaranteed, which presented an unsustainable risk to the bank should it need to foreclose on the contracts as collateral in the future.
eOriginal demonstrates how an eAsset Management solution resolves the uncertainty and mitigates risk, with benefits including: ironclad control; Authoritative Copy creation and management that are in compliance with UCC Article 9-105, UETA Section 16, and ESIGN Section 7021; legality to the of managing financial assets; and confidence that you can manage and monetize your digital transactions to the stringent compliance requirements.
“Businesses that execute contracts with significant financial value, but lack a post-signature management solution to manage and track the post-signature life, are jeopardizing their assets’ revenue streams,” said Stephen Bisbee, President and CEO of eOriginal. “Without proper management of the Authoritative Copy, they could come up against problems with compliance, and, ultimately, obtaining rating agency approval and receiving acceptance from financial partners.”
Those interested in learning more about how to mitigate risk around financial assets can download a copy of the white paper here: https://www.eoriginal.com/white-papers.html.