N.Y. Real Property Law § 291-i: Validity of electronic recording

§ 291-i. Validity of electronic recording. 1. Notwithstanding any law

to the contrary, (a) where a law, rule or regulation requires, as a

condition for recording, that an instrument affecting real property be

an original, be on paper or another tangible medium or be in writing,

the requirement is satisfied by a digitized paper document or an

electronic record of such instrument;

(b) where a law, rule or regulation requires, as a condition for

recording, that an instrument affecting real property be signed, the

requirement is satisfied, where the instrument exists as a digitized

paper document, if the digitized image of a wet signature of the person

executing such instrument appears on such digitized paper document or,

where the instrument exists as an electronic record, if the instrument

is signed by use of an electronic signature;

(c) where a law, rule or regulation requires, as a condition of

recording, that an instrument affecting real property or a signature

associated with such an instrument be notarized, acknowledged, verified,

witnessed or made under oath, the signature requirement is satisfied if:

(i) the digitized image of a wet signature of the person authorized to

perform that act and any stamp, impression or seal required by law to be

included, appears on a digitized paper document of such instrument; or

(ii) the electronic signature of the person authorized to perform that

act, and all other information required to be included, is attached to

or logically associated with an electronic record of such instrument,

provided, however that no physical or electronic image of a stamp,

impression or seal shall be required to accompany such electronic

signature.

(d) where a law, rule or regulation requires, as a condition of

recording an instrument affecting real property, that any accompanying

document be filed therewith, the requirement is satisfied if, in the

case of recording by electronic means, a digitized paper document or

electronic record of any such accompanying document is presented to the

recording officer at the same time as such instrument is recorded by

electronic means; provided that each such document or record shall be

presented to the recording officer as a separate digitized paper

document or electronic record unto itself.

2. A digitized paper document or documents shall be created using a

software application or other electronic process which stores an image

of the original paper document or documents, and which does not permit

additions, deletions or other changes to the digitized image, or if

additions, deletions or changes are permitted, a media trail exists

which creates an electronic record which makes it possible to identify

these changes.

3. Nothing in this section or any other provision of law shall be

construed to require the recording by electronic means of instruments

affecting real property. The decision by each county clerk to

participate in electronic recording is discretionary. Once a county

clerk permits electronic recording, the county shall accept such

electronic recordings.

4. Where any recording officer permits instruments affecting real

property and any accompanying documents to be presented for recording or

filing as digitized paper documents or electronic records pursuant to

this section, such recording by electronic means shall be in accordance

with the rules and regulations established by the electronic facilitator

pursuant to subdivision five of this section.

5. In order to ensure consistency in the standards and practices of,

and the technology used by recording officers in the state, the

electronic facilitator, as described in section three hundred three of

the state technology law, shall, consistent with the provisions of

article three of the state technology law, promulgate rules and

regulations, and amendments thereto, as appropriate governing the use

and acceptance of digitized paper documents, electronic records and

electronic signatures under this article. Such authority shall address

and be limited to standards requiring adequate information security

protection to ensure that electronic records of instruments affecting

real property documents are accurate, authentic, adequately preserved

for long-term electronic storage and resistant to tampering. When

promulgating rules and regulations, the electronic facilitator may take

into consideration: (a) the most recent standards promulgated by

national standard-setting bodies such as, without limitation, the

property records industry association; (b) the views of interested

persons and governmental officials and entities, including but not

limited to recording officers and representatives of the state title,

legal and banking industries; and (c) the needs of counties of varying

size, population, and resources.

6. Nothing contained in this section shall be construed to authorize a

recording officer to furnish digitized paper documents of the reports

required by section five hundred seventy-four of the real property tax

law. Such reports shall be furnished as paper documents with the

requisite notations thereon, except where the state board of real

property services has agreed to accept data submissions in lieu thereof

or has provided for the electronic transmission of such data pursuant to

law.