PA Notary Liabilities & Penalties 2 — Questions and Answers
Question 1: A notary's surety company makes a payment to a claimant due to the notary's misconduct. Under Pennsylvania law, what is the surety's specific obligation to the Department of State following this payment?
- The surety must notify the Department within 60 days of the payment.
- The surety is required to automatically double the bond amount.
- The surety must notify the Department not later than 30 days after making the payment. (Correct answer)
- The surety must request the notary's commission be immediately revoked.
Correct answer: The surety must notify the Department not later than 30 days after making the payment.
Pennsylvania law (57 Pa.C.S. § 321(e)(6)) explicitly requires the surety or issuing entity to notify the Department of State not later than 30 days after making a payment to a claimant under the notary's bond. This ensures the Department is aware of misconduct that resulted in a financial loss and can take appropriate disciplinary action.
Question 2: A Pennsylvania notary is found to have a direct pecuniary interest in a transaction they notarized. Which of the following best describes the legal status of this notarial act?
- The act is automatically null and void.
- The act is considered a felony offense.
- The act is voidable. (Correct answer)
- The act remains valid, but the notary faces a mandatory $1,000 fine.
Correct answer: The act is voidable.
According to 57 Pa.C.S. § 304(b)(3), a notarial act performed in violation of the conflict of interest rules (such as having a direct or pecuniary interest) is voidable, not automatically void. This means the act is valid until it is challenged and a court or other authority nullifies it.
Question 3: A non-attorney notary in Pennsylvania is asked by a client to choose the correct notarial certificate for a complex legal document. The notary, wanting to be helpful, reviews the document and attaches an acknowledgment certificate. This action could expose the notary to penalties for which of the following?
- Charging an unauthorized fee for legal advice.
- The unauthorized practice of law. (Correct answer)
- Failing to require personal appearance.
- Improperly using the official stamp.
Correct answer: The unauthorized practice of law.
Selecting the type of notarial act or certificate for a document constitutes giving legal advice, which non-attorney notaries are strictly prohibited from doing. This falls under the definition of the unauthorized practice of law, which can lead to severe penalties, including commission revocation and potential civil and criminal charges.
Question 4: A notary fails to report a change of their office address to the Department of State within the legally mandated timeframe. What is the specific consequence for this failure under Pennsylvania notary law?
- A mandatory 30-day suspension of their commission.
- They vacate their office. (Correct answer)
- An automatic fine of $500.
- They must retake the notary public examination.
Correct answer: They vacate their office.
Under 57 Pa.C.S. § 7(a), a notary public vacates their office by removing their office from the Commonwealth. More importantly, the law requires written notice to the Secretary of the Commonwealth within five days of a change of address within the Commonwealth. While the statute doesn't specify an immediate penalty for failing to report an in-state move, the ultimate consequence of failing to maintain a valid address of record can be the vacation of the office.
Question 5: If a notary's journal is lost or stolen, the notary must notify the Department of State. What is the maximum administrative penalty the Department may impose specifically for this or other violations of the notary law?
- A fine of up to $500 per violation.
- A fine of up to $1,000 for each act or omission. (Correct answer)
- A fine of up to $2,500 and mandatory re-education.
- A fine equivalent to the amount of the notary's bond.
Correct answer: A fine of up to $1,000 for each act or omission.
57 Pa.C.S. § 323(a.1) authorizes the Department of State to impose an administrative penalty of up to $1,000 on a notary public for each act or omission that constitutes a violation of the chapter. This includes failing to properly secure and maintain the journal, as well as failing to report its loss.
Question 6: Which of the following scenarios could result in a notary's surety bond being liable for a claim?
- The notary refuses to notarize a document for a customer without proper identification.
- The notary charges a clerical fee for travel that the customer feels is too high.
- The notary makes a typographical error in the notarial certificate that is later corrected.
- The notary violates a law with respect to notaries public, causing a financial loss to a third party. (Correct answer)
Correct answer: The notary violates a law with respect to notaries public, causing a financial loss to a third party.
According to 57 Pa.C.S. § 321(e)(4), if a notary public violates a law with respect to notaries public in the Commonwealth, the surety is liable under the bond. The bond exists to compensate individuals who suffer financial harm as a direct result of the notary's official misconduct or negligence.
PA Notary Liabilities & Penalties 2
A notary's surety company makes a payment to a claimant due to the notary's misconduct.
Under Pennsylvania law, what is the surety's specific obligation to the Department of State following this payment?