A NOTARY BOND AND ITS IMPORTANCE
Posted by Notarybusinessess on September 5th, 2011
A notary public is a government authorized official appointed by the Secretary of State’s office to verify the identity of the individual parties contracted. To validate any contract a notary public requires producing a guarantee amount or bond during his/her joining. This bond "guarantees" that if the notary public violates the rule through negligence of their duties, funds must be available for reimbursement.
The key responsibility of a notary public is to confirm that the individual parties in a contract should provide genuine information. The State had to face a loss if the notary fails to properly confirm the identity of the contracting parties.
Let’s say two parties are contracting for some businesses on a notary bond in front of notary public. According to the rules the notary public should check the notary bond, identity and general information related to bond and bonding parties. But in some cases these notary public fails to verify the information or purposely neglects the information and sign the notary bond. Due to which bonded parties or some other party had to face consequences. To avoid such consequences the notary public had to reimburse the bonded money to the parties as notary public has violated the rules by failing in their duty to verify information of contracted parties and notary bond. The other party has filed a claim against the State body in which the transaction occurred for his loss.
A notary bond is a guarantee of payment to the State. Any loss due to negligence of rule should be bearded by the state with penalty amount. You must be familiar with an auto insurance policy. If you face an auto accident, the insurance company pays the claim amount and writes off the loss. You are not required to reimburse the company for the damages as you are under contract. Similarly the notary bond is simply a guarantee that the funds will be available when a loss will occurs. The insurance company makes a payment to the State equal to the penalty amount of the bond. However, the loss paid by the insurance company is not simply written off. They will seek reimbursement from the bonded party -THE NOTARY PUBLIC!
A notary bond helps the public. Then who protects the notary? Insurance coverage is also provided for protecting the notary which is called Notary Public Errors and Omissions. This can be purchased by paying a nominal fee to insurance companies.
To end up, purchasing a notary bond is prime requirement to become a notary public. There are many companies which deal in this business online. They provide notary bonds in Arkansas, office supply in Florida, stamps in California and more. Browse these online galleries today and get notary supplies as per your needs.
About the Author:
Author, John P. Gallagher is the President at Notary Service and Bonding Agency Inc. Notary Service and Bonding Agency Inc. offers everything one need to become a notary public in Michigan, Florida, Texas, Missouri, Illinois, Washington, Pennsylvania and other states. They are the online source for high quality office supplies like Illinois notary bonds, notary public seals and Idaho notary bonds.
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About the AuthorNotarybusinessess
Joined: September 5th, 2011
Articles Posted: 9
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