Topic: Notaries Public
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We would like all of our account opening documents and other paperwork on our teller line to be signed with an electronic pad so that paper copies do not need to be printed. For documents requiring notarized signatures, we would have a notary witness a customer sign with an electronic pad then sign their name using an electronic pad. The notary’s information also would be entered electronically. Is the notary’s seal required? If so, can it be affixed electronically?
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Notaries commissioned to perform notarial acts in Illinois must affix their seal to their signature, and this cannot be done electronically. Further, we believe that when your customer’s signature is being notarized, both your customer and the notary must sign on paper using ink. The Illinois Notary Public Act requires notaries to affix their “rubber…
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A son came in with a power of attorney document for his elderly father. The document was signed by a notary, but the notary did not affix his stamp. Our attorney indicated it is somewhat common for notarized documents to have no stamp. Is this true?
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We believe that a properly executed power of attorney document should include the notary’s stamped seal. The Illinois Power of Attorney Act requires a power of attorney for property to be notarized. The Illinois Notary Public Act requires notaries to affix their stamp's seal whenever they perform a notarial act. We are not aware of…
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We have a potential business customer that performs property repairs. The customer would like to deposit checks issued by insurance companies for the property repairs. The checks are payable jointly to the business and the homeowner. The business obtains limited power of attorney (POA) documents from the homeowners authorizing it to endorse and deposit the checks. Can we rely on the POA for these deposits, without the homeowner’s endorsement? Should the POA be notarized? Should the business endorse as power of attorney for the homeowner?
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Yes, your bank may rely on a power of attorney document that grants your business customer the authority to endorse a check on a homeowner’s behalf. In fact, the Illinois Power of Attorney Act requires you to comply with an agent’s directions that are in accordance with the agent’s POA document, “and any person who…
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Are notary fees in the State of Illinois limited to $1.00? Does that limitation apply to national banks?
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Yes, the Illinois Notary Public Act limits notary fees to $1.00, with exceptions for notarizations of documents conveying residential real estate, for which you may charge up to $25, and immigration forms, for which there is a statutory fee schedule. The OCC has not specifically addressed whether a state’s notary public fee limitations apply to…
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Is there any problem with us collecting notary fees that our employees earn when performing notary services for a bank customer?
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1. We are not aware of any prohibitions on financial institutions collecting notary fees charged to customers. There are no provisions in the Illinois Notary Public Act that would prevent this practice, and we are aware of at least one Illinois Supreme Court case upholding an employer’s right to collect notary fees from public employees…
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What records do we need to maintain when charging notary fees?
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The Notary Public Act requires that notaries provide receipts to their customers and keep records that demonstrate compliance with the $1 maximum on notary fees. 5 ILCS 312/3-104(d). The only guidance given as to what the record should contain is that the receipt and record must be sufficient “evidence of no wrongdoing.” In addition to…
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Is it a bad practice to charge a notary fee to non-customers if we do not charge a fee to our customers?
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There is nothing in the Illinois Notary Public Act that forbids a bank from charging a $1 fee only to non-customers. The National Notary Association’s The Notary Public Code of Professional Responsibility, states that notaries should not discriminate between customers noncustomers, but that guidance is not binding (“[t]he Notary shall not base the charging or…
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What are the record retention requirements that apply to banks under Illinois law?
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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA. We are not aware of any Illinois regulations that directly address record retention for banks.…
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What are the requirements for participating in the medallion signature guarantee program?
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The SEC rules governing stock transfer agents allow them to require all signatures to be guaranteed by a guarantor (meaning a banks or other financial institution) that is a member of a “signature guarantee program.” 12 CFR 240.17Ad-15(g). According to the FDIC’s Trust Examination Manual (Section 3, Part II, Subpart G), the only signature guarantee…
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Are Illinois notaries required to log all internal bank documents (mortgage releases, etc.)?
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Notaries are not required to log internal bank documents related to a residential mortgage, but they must log documents that are considered “documents of conveyance” of residential property. The Illinois Notary Public Act requires all notaries to keep a Notarial Record of any “document of conveyance” that transfers residential property (defined as a building or…