NE Notary - Nebraska Notary Notary Liability and Misconduct Questions and Answers 1 — Questions and Answers
Question 1: A Nebraska notary incorrectly identifies a signer on a real estate document, resulting in a fraudulent transfer and significant financial loss for the rightful property owner. The owner files a claim. What is the primary purpose of the notary's $15,000 surety bond in this situation?
- To pay for the notary's legal defense fees.
- To compensate the injured party for financial damages caused by the notary's misconduct. (Correct answer)
- To pay fines owed by the notary to the Secretary of State.
- To protect the notary from personal financial liability.
Correct answer: To compensate the injured party for financial damages caused by the notary's misconduct.
According to Nebraska law, a notary's surety bond is in place to protect the public from financial harm resulting from the notary's negligence or misconduct. If a claim is paid out by the surety company, the company will seek reimbursement from the notary. The bond does not protect the notary.
Question 2: The Secretary of State finds that a Nebraska notary is guilty of malfeasance in office and permanently removes them from office. What is a long-term consequence for this individual?
- They may reapply for a commission after five years.
- They must pay a fine but can reapply after passing the exam again.
- They are forever disqualified from holding the office of notary public in Nebraska. (Correct answer)
- They are placed on probation for the remainder of their original commission term.
Correct answer: They are forever disqualified from holding the office of notary public in Nebraska.
Nebraska Revised Statute 64-113 states that if the Secretary of State removes a person from the office of notary public for malfeasance, that person "shall be forever disqualified from holding the office of notary public." A temporary revocation allows for reinstatement after the period and re-passing the exam, but a permanent removal does not.
Question 3: Which of the following actions constitutes 'malfeasance in office' and could be grounds for the temporary or permanent revocation of a Nebraska notary's commission?
- Charging the maximum allowable fee for a notarial act.
- Notarizing a document for a non-resident of Nebraska who appears in person.
- Failing to follow the statutory procedures for identifying a signer. (Correct answer)
- Changing a home address without updating their notary seal.
Correct answer: Failing to follow the statutory procedures for identifying a signer.
Nebraska Revised Statute 64-113 defines malfeasance in office as, among other things, the "failure to follow the requirements and procedures for notarial acts provided for in Chapter 64." This includes proper identification of signers. Charging a legal fee, notarizing for an out-of-state signer present in Nebraska, and not needing to update a seal for an address change are not acts of malfeasance.
Question 4: A non-attorney notary in Nebraska is asked by a client, "Should I use an acknowledgment or a jurat for this affidavit?" The notary, wanting to be helpful, reviews the document and advises the client that a jurat is appropriate. This action constitutes:
- A prohibited act of malfeasance.
- The unauthorized practice of law. (Correct answer)
- Acceptable client assistance.
- A conflict of interest.
Correct answer: The unauthorized practice of law.
Nebraska Revised Statute 64-105.03 explicitly states that a notary who is not an attorney shall not determine the type of notarial act or certificate to be used if it is not indicated on the document. Providing this type of advice is considered the unauthorized practice of law.
Question 5: If a person is financially harmed by the unlawful act, negligence, or misconduct of a Nebraska notary, they may file a civil action. According to Nebraska Revised Statute 64-109, against whom can this action be brought?
- Only the surety company that issued the bond.
- Only the Secretary of State's office.
- The notary public and the surety company. (Correct answer)
- Only the notary public personally.
Correct answer: The notary public and the surety company.
Nebraska Revised Statute 64-109 specifies that a person damaged by a notary's unlawful act, negligence, or misconduct may "maintain a civil action on the official bond of such notary public against such notary public, and his sureties." This allows the injured party to sue both the notary and the bonding company.
Question 6: A Nebraska notary is convicted of a felony involving fraud during their commission term. According to Nebraska administrative rules, what is the most likely disciplinary action the Secretary of State will take regarding the notary's commission?
- Issue a written admonishment.
- Require the notary to retake the exam.
- Impose a temporary revocation for one year.
- Permanently revoke the notary commission. (Correct answer)
Correct answer: Permanently revoke the notary commission.
The Nebraska Administrative Code lists acts of malfeasance that will likely result in the total (permanent) revocation of a commission. This list includes "being convicted of a felony or crime involving fraud or dishonesty while commissioned."
NE Notary - Nebraska Notary Notary Liability and Misconduct Questions and Answers 1
A Nebraska notary incorrectly identifies a signer on a real estate document, resulting in a fraudulent transfer and significant financial loss for the rightful property owner.
The owner files a claim.
What is the primary purpose of the notary's $15,000 surety bond in this situation?