A notary public is an official appointed position by the Secretary of State's workplace in a provided state. As with most public officials, the State calls for that the person receive a surety or notary bond prior to getting their appointment. This bond “tends to make positive” that if the official violates the public trust via negligence of their duties, funds are offered to reimburse the State for its loss.
The major duty of a notary public is to validate that the person parties to a contract are who they claim to be. The State may possibly endure a loss if the notary fails to correctly confirm the identity of the parties.
Here's an instance…
Let's say Jim desires to invest in a auto presently titled to John. Jim and John bring the title to their regional notary public to notarize their signatures on the transfer of title. The notary asks each for their drivers license to confirm their identities. Jim promptly presents his, but John claims to have left his ID at residence. John is in a hurry to get the deal accomplished, so the notary public basically instructs each Jim and John to sign the title, immediately after which the notary indicators or notarizes their signatures.
Regrettably the particular person claiming to be “John” is basically John's roommate Steve. The actual John is away on getaway and had no intention of promoting the auto. Do you assume this John is a delighted camper? Had the notary refused to witness the transaction since Steve did not present identification, John would nonetheless have the title to his auto.
As a public official, the notary public in this instance violated the public trust by failing in their duty to confirm identity. John has recourse to file a claim against the State in which the transaction occurred for his loss, since the State was negligent via its appointed representative.
A notary bond is a assure of payment to the obligee (the State) ought to a loss take place for a penalty quantity of the bond. Notary bonds are commonly offered by a surety corporation (normally an insurance coverage carrier). The bond usually runs concurrently with the term of the notary public's commission.
You are likely familiar with an auto insurance coverage policy. If you have an auto accident, the insurance coverage corporation pays the claim and writes off the loss. You are not essential to reimburse the corporation for the damages.
As opposed to an auto insurance coverage policy even so, a notary bond is basically a assure that the funds will be offered ought to a loss take place. The surety ( insurance coverage corporation) tends to make a payment to the State up to the penalty quantity of the bond. Even so, this loss paid by the surety is not basically written off. They will most most likely seek reimbursement from the bonded celebration – the NOTARY!
A notary bond protects the public. Who protects the notary? Insurance coverage coverage is offered to give this protection – it is known as Notary Public Errors and Omissions and may possibly be bought for a nominal charge from insurance coverage organizations.
To sum up, buying a notary bond is a requirement to grow to be a notary public. I hope this overview has shed some light on why this is required to defend the public trust.