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ComplianceFinanceApril 21, 2015

What is TOLEC and why it matters

Understanding the standard behind vault-to-vault transfers of financial assets

By definition, TOLEC stands for the Transfer of Location of Electronic Contracts. But, in layman’s terms, what does that mean?

To simplify, TOLEC is a software communication standard for the vault-to-vault transfer of electronic chattel paper and transferable records within a single organization.

The TOLEC Standard

The transferring of electronic contracts between different vault platforms within a single organization is not as simple as attaching a file within an email and clicking send. Due to the financial value of these assets and contracts, the TOLEC standard has been enacted to ensure that the security and compliance of these assets is maintained during all stages of the transfer.

In 2008, eOriginal helped spearhead a critical step for facilitating electronic finance documentation processes and maintaining their security and integrity by serving on  the Accredited Standards Committee X9 (ASC X9) which drafted and instigated the American National Standards Institute (ANSI) to issue the ANSI X9.110-TOLEC (Transfer of Location of Electronic Contracts) standard.

The ANSI X9.110-TOLEC standard provides a legally compliant methodology to securely move original electronic finance documents, including electronic chattel paper and transferable records, from one vault to another. By following the process, companies can execute such transfers between locations without violating the requirements of current laws for the discernable existence of only one original or Authoritative Copy of the finance documents, which is a unique and identifiable electronic copy.

The standard was developed to provide an automated, verifiable process to migrate Authoritative Copies of these contracts between two electronic repositories. This provides commonality for the physical transfer of electronic contracts between the different physical vault platforms which may be maintained by banks, non-depository financial companies, underwriters and investors.


With end-to-end Digital Transaction Management (DTM) of financial assets, you can manage the entire lifecycle of the digital transaction post-signature. This is beneficial because, for many industries, the lives of contracts extend much longer than just the signature and are often associated with revenue.

If your company’s documents have a downstream afterlife, taking the processes electronic can assist with your ability to electronically transfer these high-value contracts. One of the critical features that banks and funding sources look for in a digital solution is the ability to securely, compliantly, and electronically transfer these contracts between vault platforms.

The ANSI X9.110-TOLEC standard outlines the process for vault-to-vault transfers to automatically authenticate, validate and maintain the controller and source of the Authoritative Copy. eOriginal’s Transferable Records Services enable the control of electronic assets in accordance with the Transferable Records requirements of UETA and ESIGN, as well as the Uniform Commercial Code (UCC) requirements for the creation, sale, pledging, pooling, syndication, or securitization of electronic chattel paper. These Transferable Record Services include the ability to transfer such high value assets between vault platforms with no impact to document integrity, security, ownership, or control.

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