MO Notary Notary Liability and Ethics 1 — Questions and Answers
Question 1: What is the primary purpose of a Missouri notary's required surety bond?
- To protect the notary from personal lawsuits
- To protect the public from financial harm caused by notary misconduct (Correct answer)
- To cover the notary's errors and omissions insurance premiums
- To guarantee the notary's professional fees will be paid
Correct answer: To protect the public from financial harm caused by notary misconduct
The surety bond protects the public by providing a source of compensation if the notary's misconduct or negligence causes financial harm to a signer or other party.
Question 2: A Missouri notary is asked to explain what type of notarization is required for a legal document. What should the notary do?
- Advise the signer based on their knowledge of notarial acts
- Recommend the type of notarization that seems most appropriate
- Decline to give legal advice and refer the signer to an attorney (Correct answer)
- Contact the Secretary of State's office for guidance before proceeding
Correct answer: Decline to give legal advice and refer the signer to an attorney
Advising signers on which type of notarization is required constitutes the unauthorized practice of law, so notaries must refer such questions to an attorney.
Question 3: A signer appears visibly frightened and reluctant to sign a document being presented by a third party. What is the notary's ethical obligation?
- Proceed with the notarization if the signer presents valid ID
- Refuse to perform the notarization and suggest the signer seek help (Correct answer)
- Ask the third party to leave the room before proceeding
- Complete the notarization but note the concern in the journal
Correct answer: Refuse to perform the notarization and suggest the signer seek help
A notary must refuse to notarize when there are signs that a signer is acting under duress or coercion, as voluntary action is essential to a valid notarization.
Question 4: Is a Missouri notary personally liable for damages caused by their negligence that exceed the amount of the surety bond?
- No, liability is capped at the bond amount of $10,000
- Yes, a notary can be personally liable for damages beyond the bond amount (Correct answer)
- No, E&O insurance automatically covers all excess damages
- Yes, but only if the Secretary of State determines willful misconduct occurred
Correct answer: Yes, a notary can be personally liable for damages beyond the bond amount
The surety bond provides only a minimum level of protection; a notary can be personally sued and held liable for damages that exceed the $10,000 bond amount.
Question 5: Which of the following actions by a Missouri notary constitutes the unauthorized practice of law?
- Explaining the step-by-step notarization process to a signer
- Preparing or selecting the appropriate legal document for a signer (Correct answer)
- Informing a signer of the maximum notarial fee allowed by law
- Refusing to notarize a blank document
Correct answer: Preparing or selecting the appropriate legal document for a signer
Preparing legal documents or advising signers on which documents to use constitutes the unauthorized practice of law, which is prohibited for notaries.
Question 6: What is the required surety bond amount for a commissioned Missouri notary public?
- $5,000
- $10,000 (Correct answer)
- $15,000
- $25,000
Correct answer: $10,000
Missouri law requires notary public applicants to obtain a $10,000 surety bond as a condition of commissioning.
Question 7: Which state authority has the power to revoke a Missouri notary's commission for misconduct?
- The Missouri Bar Association
- The county recorder of deeds
- The Missouri Secretary of State (Correct answer)
- The local circuit court judge
Correct answer: The Missouri Secretary of State
The Missouri Secretary of State issues notary commissions and holds the authority to revoke or suspend them for misconduct or violations of notary law.
MO Notary Notary Liability and Ethics 1
What is the primary purpose of a Missouri notary's required surety bond?