Posted by PAW on 3/16/06 8:55pm
Msg #105986

Speaking of pending legislation ...

H.R.1458 has passed a major hurdle. Subcommittee hearings are completed (as of 3/9).

This bill will require any Federal or State court to recognize any notarization made by a notary public licensed by a State other than the State where the court is located when such notarization occurs in or affects interstate commerce. Sponsor: Rep Aderholt, Robert B. [AL-4] (introduced 4/5/2005)

Reply by John_NorCal on 3/16/06 9:45pm
Msg #106005

Makes sense. There should also be, in my opinion, more uniformity in notary laws. I don't believe there should be a great disparity among states. As we can see from the questions posed on this forum, there tends to be too many differences from one state to another.

Reply by PAW on 3/17/06 6:01am
Msg #106089

But one thing I don't understand is why is this being federally legislated? If I'm not mistaken, all states honor the notarial certificates from other states. Even California! So why spend the time and money to make a federal statute of something that already exists?

Reply by BobbiCT on 3/17/06 6:50am
Msg #106098

Congressional Office of Redundancy - U.S. Constitution ...

Obviously Rep. Aderhold hasn't read the U.S. Constitution. Mergers & acquisition and commercial lawyers know this one by heart. Acts by a public official (notary public) are covered under the U.S. Constitution (full faith & credit) ; i.e., interstate commerce. For example, a notarization performed in CT by a duly authorized official performed correctly according to CT laws MUST BE accepted in California and vice versa. Of course, there are SPECIFIC real estate laws and requirements that may differ from state to state (text of document and witness requirements), but the notarization block if correct for the state it was performed in MUST BE accepted by the receiving state. That said, it is constantly argued over by low-paid, under educated title employees and lender clerks.

A notarization is a "public act" by a "public official."

U.S. Constitution Article IV

Section 1. Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state. And the Congress may by general laws prescribe the manner in which such acts, records, and proceedings shall be proved, and the effect thereof.

....
Not a lawyer. Not legal advice.

Reply by Marlene/USNA on 3/17/06 10:51am
Msg #106204

NNA behind the scenes on this one.

Read the committee hearing reports. It is intended to prevent another occurrence such as the Michigan case, where a lawsuit called into play an outdated law requiring the authentication of an out-of-state notary for the transaction to be valid and almost gave heart attacks to every litigator in the state.