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Notary Bond

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Notary Bond Information

Notary bonds are bonds that are required by most states in order to be licensed and conduct business as a notary public. Notaries are individuals powered by the state who have the ability to perform certain legal functions. These functions are mostly limited to administering oaths and affirming signatures. Even though these practices are fairly simple, a mistake can cause much more significant and costly problems. To protect against any problems that someone might encounter from a notary, most states have a bonding requirement as part of the notary public registration process.

Notary bonds work like any professional surety bond. Their purpose is to give consumers peace of mind that the professional service provider, in this case a notary, is licensed to perform the services and able to provide reimbursement in the case of any fault of their own. Mistakes by a notary could potentially invalidate an important legal document or create other expensive consequences for the consumer. The bond requirement allows consumers of notary services to rely on a single notary.

Notaries are licensed through the states. A claim against the notary in his or her professional capacity is filed against the state. The surety company collects a fee to write the notary bond. If a claim is made, the surety pays out to the state, as obligee, in the amount of a claim, up to the maximum limit of the bond. The payment is then used to settle the claim for damages by the notary’s client.

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