81 FR 23348 - Notice of Policy Clarification for Acceptance of Documents With Digital Signatures by the Federal Aviation Administration Aircraft Registry

DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration

Federal Register Volume 81, Issue 76 (April 20, 2016)

Notice is hereby given of the FAA's clarification of its policy regarding the acceptance of documents submitted to the FAA Aircraft Registry with digital signatures in support of aircraft registration under 14 CFR 47.13 and conveyances or security documents submitted to the FAA Aircraft Registry regarding claims and interests under 14 CFR 49.13.

[Federal Register Volume 81, Number 76 (Wednesday, April 20, 2016)]
[Notices]
[Pages 23348-23349]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-09069]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration


Notice of Policy Clarification for Acceptance of Documents With 
Digital Signatures by the Federal Aviation Administration Aircraft 
Registry

AGENCY: Federal Aviation Administration (FAA), Department of 
Transportation (DOT).

ACTION: Notice of FAA policy clarification.

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SUMMARY: Notice is hereby given of the FAA's clarification of its 
policy regarding the acceptance of documents submitted to the FAA 
Aircraft Registry with digital signatures in support of aircraft 
registration under 14 CFR 47.13 and conveyances or security documents 
submitted to the FAA Aircraft Registry regarding claims and interests 
under 14 CFR 49.13.

DATES: Effective Date: The policy described herein is effective May 1, 
2016.

FOR FURTHER INFORMATION CONTACT: Ladeana G. Peden at 405-954-3296, 
Office of Aeronautical Center Counsel (AMC-7), Federal Aviation 
Administration, 6500 S. MacArthur Blvd., Oklahoma City, Oklahoma 73169.

Background

    The FAA reviewed policies and practices regarding the acceptance of 
digital signatures on documents filed with the FAA Aircraft Registry. 
Based on that review we find that signatures, other than hand scribed 
signatures, are acceptable under State law. (Historically, the FAA has 
accepted instruments, for recording, based on their validity under 
state law. See generally 49 U.S.C. 44108(c)) Specific court cases have 
held that it is immaterial with what kind of instrument a signature is 
made. See Maricopa County v. Osborn, 60 Ariz 290 (1943); and State of 
North Carolina v. David Leroy Watts, 222 SE. 2d 389 (1976). Selected 
State statutes also provide that digitally signed communications are 
signed writings. See Ca. Gov't Code 16.5 (West 1995); also the Illinois 
Financial Institutions Digital Signature Act, 205 Ill. Comp. Stat. 705/
10 (West 1998). For a general discussion of Signatures, see Corpus 
Juris Secundum, 80 C.J.S. Signatures, Sec.  7 (2000).
    On October 21, 1998, Public Law 105-277, Government Paperwork 
Elimination Act, directed the Office of Management and Budget (OMB) to 
develop procedures for the use and acceptance of electronic signatures 
by Federal agencies. The Act requires that, when practicable, Federal 
agencies should use electronic forms, electronic filing, and digital 
signatures to conduct official business with the public.
    The Electronic Signatures in Global and National Commerce Act, 
Public Law (Pub. L.) 106-229, enacted June 30, 2000, provides that the 
use of electronic records and electronic signatures is an acceptable 
practice when conducting interstate and foreign commerce.
    On October 31, 2008, the U.S. Department of Transportation, Federal 
Aviation Administration, published FAA Order 1370.104, Digital 
Signature Policy. This Order established the FAA policy for the use of 
digital signatures. The Order states ``Electronic signatures describe 
digital markings used to bind a party or, to authenticate a record. It 
is considered the digital equivalent of the traditional handwritten 
signature used to sign a contract or document.'' The policy defines a 
digital signature as:

. . . a type of electronic signature that is legally acceptable and 
offers both signer and transaction authentication. The digital 
signature is the most secure and full-featured type of electronic 
signature. Digital signatures are federally acceptable types of 
electronic signatures for business transactions as specified in the 
National Institutes of Standards and Technology (NIST) guidelines.

    14 CFR 47.13(a) provides ``Each person signing an Aircraft 
Registration Application, AC Form 8050-1, or a document submitted as 
supporting evidence under this part, must sign in ink or by other means 
acceptable to the FAA.'' (emphasis added) 14 CFR 49.13(a) provides 
``Each signature on a conveyance must be in ink.''
    Black's Law Dictionary, 7th Edition (``Black's''), defines a 
signature as ``[a] person's name or mark written by that person or at 
the person's direction. 2. . . . Any name, mark or writing used with 
the intention of authenticating a document.'' Black's defines a digital 
signature as ``[a] secure, digital code attached to an electronically 
transmitted message that uniquely identifies and authenticates the 
sender.''
    Based on the foregoing, the FAA Civil Aviation Registry, Aircraft 
Registration Branch determined that ink signatures and legible digital 
signatures, comply with the signature requirements of 14 CFR parts 47 
and 49.

Policy Clarification

    Effective May 1, 2016 the FAA Civil Aircraft Registry, Aircraft 
Registration Branch (the ``Aircraft Registry'') will accept printed 
duplicates of electronic documents that display legible, digital 
signatures that are filed in compliance with Parts 47 and 49 of the FAA 
Regulations (14 CFR parts 47 & 49). These documents include but are not 
limited to the following:
    (i) Aircraft Registration Application, AC Form 8050-1;
    (ii) Aircraft Bill of Sale, AC Form 8050-2, or equivalent transfer 
documents;
    (iii) Security documents;
    (iv) Conditional Sales Contracts;
    (v) Leases; and,
    (vi) Any supporting authorization documents such as Powers of 
Attorney, Trust Agreements, and supplements of related documents, and 
Limited Liability Company Statements, et-cetera.
    In order to accommodate applicants for aircraft registration, the 
Aircraft Registry will make available a downloadable Aircraft 
Registration Application, AC Form 8050-1. Applicants may sign the form 
using a legible digital signature. A printed duplicate of the digitally 
signed application may be submitted in support of aircraft registration 
and a second duplicate copy may be retained in the aircraft as 
temporary 47.31 authority to operate the aircraft within the United 
States, in lieu of the pink copy of Form 8050-1 permitted under 14 CFR 
47.31(c), pending registration of the aircraft.
    Upon receipt of a document with a digital signature by the FAA 
Civil Aircraft Registry, Aircraft Registration Branch (the Aircraft 
Registry), FAA Legal Instrument Examiners will review each document and 
determine whether the document has a legible and acceptable digital 
signature. A legible and acceptable digital signature will have, at 
minimum, the following components:
    (1) Shows the name of the signer and is applied in a manner to 
execute or validate the document;
    (2) Includes the typed or printed name of the signer below or 
adjacent to the signature when the signature uses a digitized or 
scanned version of the signer's hand scribed signature or the name is 
in a cursive font;
    (3) Shows the signer's corporate, managerial, or partnership title 
as part of or adjacent to the digital signature when the signer is 
signing on behalf of an organization or legal entity;

[[Page 23349]]

    (4) Shows evidence of authentication of the signer's identity such 
as the text ``digitally signed by'' along with the software provider's 
seal/watermark, date and time of execution; or, have an authentication 
code or key identifying the software provider; and
    (5) Has a font, size and color density that is clearly legible and 
reproducible when reviewed, copied and scanned into a black on white 
format.
    Documents digitally signed in the forgoing manner will be 
considered facially valid and will be acceptable for review and 
consideration by the FAA Civil Aircraft Registry, Aircraft Registration 
Branch (the Aircraft Registry) for recordation and registration 
purposes.

    Issued in Washington, DC, on April 13, 2016.
John S. Duncan,
Director, Flight Standards Service.
[FR Doc. 2016-09069 Filed 4-19-16; 8:45 am]
 BILLING CODE 4910-13-P