Bonds and Liability Flashcards

An Indiana notary fails to properly identify a signer, and a fraudulent deed is recorded. Who can file a claim against the notary's surety bond?

Answer: The injured party who suffered financial loss from the notary's negligence

Any person who suffers financial loss due to a notary's negligence or misconduct in performing notarial acts can file a claim against the surety bond.

Can multiple claims be filed against a single Indiana notary's surety bond?

Answer: Yes, but total payouts cannot exceed the bond amount

Multiple claims can be filed, but the total payouts from the surety company are limited to the bond amount ($25,000).

What personal liability does an Indiana notary face if they commit misconduct while performing notarial acts?

Answer: The notary can be personally liable for the full amount of damages caused, beyond the bond

A notary's personal liability is not limited to the bond amount. They can be sued for the full extent of damages their misconduct caused.

An Indiana notary is employed by a title company. If the notary makes an error during a real estate closing, who may be held liable?

Answer: Both the notary and the employer may be held liable

Both the notary and their employer may face liability. The employer can be liable under the doctrine of respondeat superior for employee actions performed within the scope of employment.

Under Indiana law, for how long does a notary's surety bond need to remain active?

Answer: The entire 8-year commission term

The surety bond must remain active for the full duration of the notary's 8-year commission term.

Which of the following actions could result in a claim against an Indiana notary's surety bond?

Answer: Notarizing a document without verifying the signer's identity

Failing to verify the signer's identity is negligence that could lead to fraud, making it grounds for a bond claim.