What is a Notary Public?
March 15th, 2010A notary is an appointed position by the Secretary of State’s department in a given state. As with most public officials, the State specifies that the person obtain a notary bond before receiving their commission. This bond “makes sure” that if the official violates the public trust through neglect of their responsibilities, funds are set aside to reimburse the State for its loss.
The principal duty of a notary public is to validate that the individual parties to an agreement are who they claim to be. The State may experience a loss if the notary public fails to properly confirm the identity of the parties.
As a public official, the notary public causes harm to the public trust by failing in their responsibility to confirm identity. If a North Carolina notary public doesn’t confirm identity and a loss occurs, an injured party can file a claim against that State for its loss, because the State was negligent through its appointed representative.
A notary bond is a guarantee of payment to the obligee (the State) when losses occur for a penalty amount of the bond. Surety bonds are often provided by a surety company (typically an insurance carrier). The bond often runs concurrently with the period of a notary’s commission.
You may be familiar with a property insurance policy. When a person has a home insurance in Indiana claim, the insurance carrier pays the loss and writes off the loss. You aren’t required to reimburse the company for the damages. Unlike a property insurance policy however, a notary bond is simply a promise that the funds will be available if losses occur. The surety (insurance company) pays the State up to the penalty amount of the bond. However, this loss paid by the surety is not simply written off. The carrier will most likely seek reimbursement from the bonded person, the notary themself.
A notary bond protects the public. Who protects the notary? Insurance coverage is available to provide this protection – it’s called Notary Errors and Omissions and may also be obtained for a nominal fee from insurance companies.