Can this be signed electronically?

Yes. Electronic signatures are legally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and applicable state UETA statutes; check for statutory exceptions such as wills or certain court filings.

Is notarization always required?

Not always. Notarization depends on recipient or state requirements; some jurisdictions or recorders require notarized acknowledgements for filing or recording.

What level of signer authentication is recommended?

Use email + SMS code or stronger methods (KBA or SSO) for regulated attestations; maintain an audit trail showing authentication steps and signer attribution.

How do I correct an error after signing?

Create an amendment or corrected declaration signed by the same authorized party. Do not alter the executed document; preserve originals and record the corrective instrument.

What supporting documents should be attached?

Attach labeled exhibits that substantiate declared facts, such as bank statements, corporate resolutions, or identification documents referenced in the declaration.

How long should I retain executed copies?

Follow retention rules: IRS items generally 3 years (IRC §6501(a)), HIPAA 6 years (45 CFR §164.530(j)), and maintain longer retention where state law or industry rules require it.

Electronic Signature
Templates
Legal
Legal BFS Declaration

Legal BFS Declaration

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LEGAL BFS DECLARATION

This Legal BFS Declaration (the Declaration) is made as of by and between Declarant Name: with principal address: (the "Declarant"), and Recipient Name: with principal address: (the "Recipient").

RECITALS

WHEREAS, the Declarant maintains business records, financial statements, schedules and other information reflecting its business financial status (collectively, the Business Financial Statements or BFS); and

WHEREAS, the Recipient has requested and the Declarant has agreed to provide a sworn declaration of the BFS for the period specified below for the Recipient's limited use in connection with credit, underwriting, regulatory review, or contractual diligence; and

WHEREAS, the Declarant represents that the BFS and related disclosures are true, complete and prepared in accordance with the Declarant's ordinary accounting practices and are not misleading as to any material fact.

NOW THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows:

1. DEFINITIONS

1.1 "BFS" means the balance sheet, income statement, statement of cash flows, notes, schedules and any ancillary schedules prepared by Declarant for the Period and delivered to Recipient.

1.2 "Period" means the time frame from through .

2. REPRESENTATIONS AND WARRANTIES

The Declarant represents and warrants to the Recipient that, as of the effective date and for the Period:

2.1 The BFS fairly present, in all material respects, the financial condition of the Declarant in accordance with the Declarant's stated accounting policies. The BFS do not omit any material liability or obligation required by generally accepted accounting principles as applied by the Declarant.

2.2 There are no undisclosed liabilities, contingent obligations, guarantees, or off-balance sheet arrangements that would materially affect the BFS or the representations herein.

2.3 Declarant has made available to Recipient all books, records and schedules relating to the BFS reasonably requested by Recipient, except to the extent expressly limited in writing.

3. BUSINESS FINANCIAL STATEMENT DETAILS

Fiscal Year End Were the BFS audited?

Audited Unaudited

Statement Totals Material explanations, qualifications or notes to the BFS

4. MATERIAL CHANGES

Declarant covenants that, except as disclosed in writing to Recipient, there has been no material adverse change in the business, operations, properties, liabilities or financial condition of the Declarant since the end of the Period.

If any material change has occurred, describe with dates and amounts

5. USE, RELIANCE AND LIMITATIONS

5.1 The BFS and this Declaration are provided solely for the Recipient's use in connection with the purpose disclosed to Declarant. Recipient may rely on the representations contained herein for such purpose, and Recipient shall not disclose or distribute the BFS except as required by law or as permitted under the Confidentiality provisions below.

5.2 The Recipient acknowledges that the BFS are prepared by Declarant and that the Recipient bears responsibility for its independent review, verification and due diligence.

6. CONFIDENTIALITY

The Recipient shall treat the BFS and all non-public information provided pursuant to this Declaration as confidential and shall not disclose such information to any third party except to its advisors and affiliates who have a bona fide need to know and who are bound by confidentiality obligations at least as protective as those contained herein.

7. COVENANTS; INDEMNIFICATION

Declarant covenants to supplement the Recipient promptly in writing of any material inaccuracy or material change to the BFS of which Declarant becomes aware. Declarant agrees to indemnify and hold Recipient harmless from any loss arising from a willful misrepresentation or fraudulent omission in the BFS.

8. NOTICES

Notices to Declarant (address for service) Notices to Recipient (address for service)

9. GOVERNING LAW; MISCELLANEOUS

9.1 Governing Law. This Declaration shall be governed by and construed in accordance with the laws of the State of without regard to principles of conflict of laws.

9.2 Entire Agreement. This Declaration constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements and understandings, whether written or oral.

9.3 Severability. If any provision of this Declaration is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

9.4 Amendments and Waiver. No amendment, modification or waiver of any provision of this Declaration shall be effective unless in writing and signed by both parties. No failure or delay by either party in exercising any right shall operate as a waiver of that or any other right.

9.5 Counterparts. This Declaration may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the same instrument.

10. EXECUTION

The parties have executed this Declaration through their duly authorized representatives effective as of the date first set forth above.

Declarant:

By:

Date:

Recipient:

By:

Date:

What the Legal BFS Declaration Is and when it’s used

A Legal BFS Declaration is a formal written statement used in banking and financial services to record facts, attest compliance, or disclose material information for regulatory, contractual, or transaction purposes. It typically identifies the declarant, states facts under penalty of law, and establishes the effective date and scope of the statement. These declarations are used for lender underwriting, account onboarding, AML/KYC attestations, or contract formation and are intended to create a reliable, auditable record that legal and compliance teams can rely on.

Why a clear Legal BFS Declaration matters

A precise declaration reduces regulatory risk, provides evidence in disputes, and supports internal control and audit requirements. Well-prepared declarations help satisfy AML/KYC, tax, and contractual obligations and make downstream processing and record retention straightforward.

Who typically prepares and signs a Legal BFS Declaration

Organizations across financial services and related legal teams prepare these declarations when a formal attestation is needed for compliance, transactions, or contract support.

Compliance officers and AML teams ensuring identity and transaction attestations for regulatory reviews.
Company officers and authorized representatives attesting to corporate facts during financing or onboarding.
External counsel and in-house legal teams preparing declarations for contract closings and dispute support.

Use the correctly authorized signer and keep the declaration accessible for audit, legal holds, and regulator inquiries.

Key elements found in a professional Legal BFS Declaration

A complete declaration combines identity, factual recitals, attestations, effective dates, signature blocks, and attachments to support the asserted facts.

Declarant Identity

Full legal name and capacity of the signer plus job title or corporate role; includes entity registration number where applicable to avoid ambiguity.

Statement of Facts

Concise factual recitals stating the precise matters being declared, with dates, locations, and any quantifiable figures referenced in the attestation.

Attestation Clause

A clear clause affirming the truth of the facts under penalty of law, and specifying the scope and purpose of the declaration for contractual or regulatory use.

Effective Date

The MM/DD/YYYY effective date that anchors the declaration; it determines timing for compliance windows and may affect statute of limitations calculations.

Supporting Exhibits

Attachments such as account statements, KYC documents, or board resolutions that the declaration references and which must be listed and attached.

Signature Block

Signature line with printed name, title, date, and notary or witness blocks if required by law or the recipient; include authority statement when signing for an entity.

Step-by-step: completing a Legal BFS Declaration

Follow these steps in order to prepare, verify, and finalize the declaration for lawful acceptance and retention.

01

Draft: Record facts and scope precisely.
02

Attach Evidence: Include labeled supporting exhibits.
03

Review Authority: Confirm signer has entity authority.
04

Sign & Date: Execute with required notarization/witnessing.

Configure a standard digital workflow for this declaration

Setup should balance signer convenience with authentication appropriate to regulatory sensitivity.

Field	Configuration
Signer Authentication	Email + SMS code or stronger KBA
Document Order	Sequential or parallel signing per role
Attachments	Require mandatory exhibits before signing
Audit Trail	Capture timestamps, IP, and actions

Where to file or deliver the completed declaration

Routing depends on the declaration’s purpose: regulatory filing, lender record, counterparty records, or internal compliance archive.

Regulator Filing: Submit per regulator instructions
Counterparty Delivery: Send to contracting party contact
Internal Archive: Store in compliance repository
Audit Copies: Provide certified copies on request

Technical considerations for eSubmission and signing

Ensure the chosen platform supports required authentication, audit trails, and secure storage for regulated financial documents.

Authentication: Email, SMS, KBA, or SSO
Document Formats: PDF, DOCX supported
Integrations: CRM and cloud storage

Select a platform that captures a complete audit trail, supports retention and export requirements, and can be configured to meet industry compliance such as HIPAA or 21 CFR Part 11 when applicable.

Penalties and legal risks for incorrect or fraudulent declarations

False Statement: Criminal or civil penalties may apply for knowingly false attestations.

Tax Penalties: Incorrect tax-related facts can trigger IRC §6721 penalties and backup withholding.

Regulatory Fines: Regulators may assess fines for incomplete AML/KYC attestations.

Contract Risk: Misstatements can void agreements or lead to indemnity claims.

Notarization Defect: Missing or improper notarization can render a declaration inadmissible.

Retention Violation: Failure to retain required records risks audit findings and penalties.

Common preparation mistakes to avoid

Using inconsistent or abbreviated legal names that prevent reliable identity matching and delay acceptance.
Omitting or mislabeling exhibits referenced in the declaration, which can invalidate the attestation’s evidentiary value.
Failing to confirm signer authority when signing on behalf of an entity, prompting follow-up for proof of authorization.
Relying on unsigned or undated signature blocks, creating ambiguity about when the declaration took effect and its enforceability.

Practical tips for accurate and efficient completion

Follow these practices to reduce errors, accelerate acceptance, and support audit readiness.

Use consistent names

Enter full legal names exactly as shown on identification or corporate filings. This reduces identity verification friction and avoids TIN mismatches or service rejections.

Attach supporting evidence

Label and attach exhibits referenced in the declaration (bank statements, board minutes, KYC documents) to substantiate factual claims and speed review.

Confirm signer authority

When an officer signs for an entity, attach a corporate resolution or power of attorney to validate signing authority and avoid later disputes.

Record audit data

Capture timestamps, IP addresses, and signer authentication logs to establish a defensible audit trail for regulators or courts.

Typical eSignature platform pricing and capability comparison

Comparison of common plan-level attributes for eSignature vendors useful when selecting a platform to manage Legal BFS Declarations.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	No cap	No cap	No cap

Frequently asked questions about the Legal BFS Declaration

Answers to common legal, technical, and procedural questions to help you finalize and validate a declaration correctly.

Need help? Contact support

Can this be signed electronically?
Yes. Electronic signatures are legally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and applicable state UETA statutes; check for statutory exceptions such as wills or certain court filings.
Is notarization always required?
Not always. Notarization depends on recipient or state requirements; some jurisdictions or recorders require notarized acknowledgements for filing or recording.
What level of signer authentication is recommended?
Use email + SMS code or stronger methods (KBA or SSO) for regulated attestations; maintain an audit trail showing authentication steps and signer attribution.
How do I correct an error after signing?
Create an amendment or corrected declaration signed by the same authorized party. Do not alter the executed document; preserve originals and record the corrective instrument.
What supporting documents should be attached?
Attach labeled exhibits that substantiate declared facts, such as bank statements, corporate resolutions, or identification documents referenced in the declaration.
How long should I retain executed copies?
Follow retention rules: IRS items generally 3 years (IRC §6501(a)), HIPAA 6 years (45 CFR §164.530(j)), and maintain longer retention where state law or industry rules require it.

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