eNotarization: The Premise, The Promise, The Reality, The Future

Ozie H. StallworthElectronic Notarization &

Notary Enforcement DirectorNorth Carolina Dept. of Secretary of State

November 15, 2012

Purpose of Notarization

• To protect citizens from fraud and forgery– Requiring personal appearance is a critical

component to preventing fraud in every state

16 States With eNotary Laws

North Carolina VirginiaKansas MinnesotaDelaware PennsylvaniaWashington ArizonaColorado FloridaNew Mexico New YorkAlaska North DakotaUtah Nevada

NASS eNotarization Standards

• Adopted in July of 2006 and readopted in 2011 at the NASS Summer Conference.

• Standard 1 affirms that personal appearance is required for eNotarizations

• Standard 2 calls for the same form of identification for eNotarization as with traditional notarization

Uniform Law Commission -ULONA

• Uniform Law on Notarial Acts revised in 2010• Traditional and electronic notarization is

viewed as the same.• Individuals must appear in person before the

eNotary at the time of the transaction.• Personal appearance does not include an

“appearance” by video technology, even if the video is “live” or synchronous.

Advocates of Personal Appearance

• National Association of Secretaries of State• Uniform Law Commission• National Notary Association• American Society of Notaries• Pennsylvania Notary Association

Not Burdensome

• Requiring personal appearance presents no additional burden

• Personal appearance is not an impediment to business

• Eliminating the personal appearance requirement is contrary to every noted notary authority in the country

Trends in the Business Community

• More stringent notary practices including:– supervisory oversight – mandatory training for those drafting and

executing affidavits and – required record keeping

• Lost Money• Lost Property• Lost Security• Lost Life

As a result of the notary’s negligence the victim may have …

Consequences of Errant Notarizations

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Terrorists

7 of the 19 terrorists from 9/11 obtained fraudulent identification, drivers license, and passports using corrupt or incompetent notaries.

(2002 testimony before the subcommittee on Crime, Terrorism, and Homeland Security)

Fact

Reliance on Notarized Documents

• New legislation requires notarization• Prima Facia status in our courts• Most reliable form of authentication

Problems With No Personal Appearance

• Lacks opportunity to:– Properly identify signer– Determine competence or capacity– Limits ability to establish volition

The State of eNotariztion

• Strong• Viable• Well vetted• Ready for Implementation

Contact Information

Ozie StallworthElectronic Notarization and Notary Enforcement DirectorN.C. Dept. of Secretary of Stateostallworth@sosnc.com919-807-2295