1. Alison Lundergan Grimes Secretary of State
Remote Notarization
facebook.com/kysecretaryofstate
@KYSecofState

2. Types of Notarization (1) Traditional Notarization
Physical Presence
Wet Signatures
Wet Notarization
(2) Electronic Notarization
Digital Signature
Digital Notarization
(3) Remote Notarization
Live Video Presence

3. Traditional Notarization Electronic Notarization
Presence
Signature
Notarial Act
Traditional Notarization
Physical Presence
Wet
Electronic Notarization
Digital
Remote Notarization
Audio Visual Communication

4. Notarization & “Why do we care?”
“Notarization helps provide confidence that transaction documents are actually signed by the persons named in the documents.”
“State, federal and bankruptcy courts have invalidated mortgages and other documents due to defective notarizations.”

5. Remote Notarization Defined
“With remote notarization, a signer personally appears before the Notary at the time of the notarization using audio-visual technology over the internet instead of being physically present in the same room. Remote notarization is also called webcam notarization or online [remote] notarization.” (

6. What is a remote notary exactly?
A Remote Notary is a legally commissioned notary public who is authorized to conduct notarizations over the internet via digital tools and a live audio video call.
All notaries, no matter how they perform their service, must watch as someone signs a document. Historically, this has required that the notary and signer must travel to meet one another in-person where the notary serves as a witness during the signing event.
However, changes in the law have enabled remote notarizations and created the concept of a Remote Notary.

7. Remote Notarization. Why do we care?
8 states have passed legislation
12 states proposed legislation this year
Various stakeholders such as NASS, MISMO, ALTA, MBA etc. are drafting model standards/legislation because the industry is pushing for this innovation.

8. Goal of Remote Notarization Task Force
NASS Remote Notarization Task Force
Announced in April 2016, the Task Force is dedicated to promoting a greater understanding of the issues and policies surrounding remote/video notarizations amongst states. The task force is reviewing technologies that facilitate remote notarizations, tracking state activity and developing possible proposals for NASS consideration.
Goal of Remote Notarization Task Force
“To gather relevant information and help members better understand the remote notarization process”

9. Members of Task Force
Co-Chair: Alison Lundergan Grimes, Kentucky Secretary of State
Co-Chair: Mark Martin, Arkansas Secretary of State
Hon. Connie Lawson, Indiana Secretary of State
Hon. Paul Pate, Iowa Secretary of State
Hon. R. Kyle Ardoin, Louisiana Secretary of State
Hon. Matt Dunlap, Maine Secretary of State
Hon. John Wobensmith, Maryland Secretary of State 
Hon. Steve Simon, Minnesota Secretary of State
Hon. Jay Ashcroft, Missouri Secretary of State
Hon. Barbara Cegavske, Nevada Secretary of State
Hon. Elaine Marshall, North Carolina Secretary of State
Hon. Al Jaeger, North Dakota Secretary of State
Hon. Robert Torres, Pennsylvania Secretary of State
Hon. Luis Rivera Marin, Puerto Rico Secretary of State
Hon. Jim Condos, Vermont Secretary of State

10. Uniform Law Commission Amendment to Notarial Acts
Changes: The 2018 Amendment to RULONA authorizes notaries public to perform notarial acts in the state in which they are commissioned for remotely located individuals using audio-visual communication technology regardless of where the individual may be located.  This amendment is not limited to foreign located individuals; it extends the authority to any remotely located individuals.
Purpose: This amendment was prepared in response to a rapidly emerging trend among the states to authorize the performance of notarial acts by means of audio-visual technology.

11. NASS Remote Electronic Notarization Standards In July 2017, NASS took on the charge of convening the appropriate parties to develop remote notarization standards that would enable remote notarizations that would protect the credibility of the process, help prevent identity fraud and provide accountability to the public in order to advance secure electronic commerce. In February 2018, the NASS members approved the Revised National Electronic Notarization Standards, to include remote notarization.

12. Timeline of Work July 2017 Resolution approved authorizing
Task Force to develop remote notarization standards
September 27, 2017
Task Force meets to discuss content of standards
December 12, 2017 Task Force conference call to discuss draft standards
February 19, 2018 NASS members approved Standards to include Remote Notarization
April 2016
NASS Task Force on remote
notarization convened
August 23, 2017
Task Force Conference call to discuss development of standards
November 20, 2017 Task Force conference call to discuss draft standards
January 18, 2018
Task Force conference call to discuss draft standards

13. Status of E-Notarization in the United States

14. E-Notarization – Real Property Transactions Only New York Washington
Electronic Notarization (19)
Alabama
Arkansas
Arizona
California
Colorado
Delaware
Florida
Iowa
Kansas
Maryland
Nebraska
New Mexico
North Carolina
North Dakota
Oregon
Pennsylvania
Utah
West Virginia
E-Notarization – Real Property Transactions Only
New York
Washington
Remote Notarization (9)
Indiana (2019)
Michigan (2019)
Minnesota (2019)
Montana (2015)
Nevada (2018)
Tennessee (2019)
Texas (2018)
Vermont (2019)
Virginia (2011)
Remote Notarization
Montana
Virginia

15. States that filed Remote Notarization Legislation in 2018: (12)
California (pending)
Colorado (postponed indefinitely)
Florida (failed)
Kentucky (failed)
Louisiana (pending)
Maryland (pending)
Missouri (pending)
Nebraska (postponed indefinitely)
Ohio (pending)
Oklahoma (pending)
Pennsylvania (pending)
South Dakota (pending)
Remote Notarization
Montana
Virginia

16. Considerations of Remote Notarization
Pros:
Finding a Notary i.e. Faster Transactions
Military & Overseas Transactions
“After Hours” Transactions
Safety of Individuals & Notary Officers
Reduce Operating Costs
More Accurate Transactions
Cons:
Security of Personal Information
Coercion
-recording the transaction serves as evidence of attribution and as a deterrence of those who see RON as a opportunity for criminal activity.

17. Policy Considerations
Identity Verification
Tamper Evident Technology
Acknowledgements
Vendor Neutral
Regulations Promulgated by SOS
UETA, URPERA, and RULONA
Consumer’s Choice
Interstate Recognition
Identity Verification – this must include presentation of a photo ID, credential analysis, identity proofing, and a digital recording of the audio/video communication capturing the notarial act
ALTA/MBA recommendation:
Remote presentation of government-issued identity credential
Credential analysis of that credential
Identity proofing by means of knowledge based authentication or biometric factors. Examples of identity proofing including dynamic knowledge based authentication, public key infrastructure, and analysis of biometric data.
The law should require use of tamper-evident technology to assure the integrity of an electronic document notarized remotely online.
Acknowledgements – legislation must provide that acknowledgements that are performed online can be readily identified and distinguished from “in-person” acknowledgements
Technology requirements should not be so specific as to favor one vendor over another. Nor should they be so restrictive that it impedes evolution of technology and way to improve security over time.
Legislation should direct SOS in the promulgation of their regulations to implement the law to use standards developed by MISMO, NASS, etc.
Areas for rulemaking authority include:
Application, qualification, and authority for remote online notaries
Electronic journal
Notice regarding performance of notarial act
Standards for performance of notarial act
Procedures for remote notarixation
Requirements or procedures to approve providers of communication technology
Fees
Record retention procedures and requirements
Standards for third-party repositories for the retention of the audio-video recording of the notarial act
The legislation should conform to UETA, URPERA, and to the maximum extent RULONA
It is desirable to include a “papering-out” provision that allows an electronically notarized document to be recordable if printed out and certified by the notary to be a true and complete copy of an electronic original. Such a provision would allow recordation of electronic documents in jurisdictions that do not currently accept electronic recordings.
Recognize that consumers have a choice in whether to use remote online notarization or not.
Interstate Recognition:
 U.S. Constitution's Full Faith and Credit Clause requirement that each state respect the "public acts, records, and judicial proceedings of every other state."
Since Virginia specifically authorizes the extraterritorial use of remote notaries, the argument is that states outside of Virginia are constitutionally obligated to accept their validity.
While this position seems compelling, it ignores the Constitution's Tenth Amendment guarantees of the rights of states to protect the interests of their own citizens.
Until state laws are enacted that recognize the validity of an extraterritorially performed remote notarization or the U.S. Supreme Court decides the issue, red flags are raised whenever a notarization occurs in one state while the documents are being signed in a different state.

18. Other Considerations Witnesses Unauthorized Access
Repository and Custodian Provisions
Witnesses:
If witnesses are required for the validity of certain instruments, the law should provide clarity and consistency with any statutes that require the use of both notaries and witnesses.
The law should give guidance as to whether the witness must be in physical proximity to the signer or whether the witness may be remote.
If remote witnessing is permitted, it may set standards for the identification of those witness similar to those required of the signer.
If remote witnessing is permitted, it should define what it means to witness an electronic signature. Consider defining the act of remotely witnessing as hearing the signer make a statement to the effect that the signer has signed the electronic record.
Unauthorized Access:
Access to electronic notarial records, electronic signatures, and seal should be kept secure from unauthorized access or use.
The law may consider granting access to the records to a title agent, settlement agent, or title insurer that has engaged the notary for purposes of a real estate transaction.
Repository and Custodian Provisions:
Notaries should be allowed to designate a third-party repository or custodian to hold the recording and electronic journal on their behalf.

19. So how do you prepare for remote notarization?
Follow the requirements for the state in which the document is being executed.
So far, every state that authorizes remote notarization but Montana requires notaries to either obtain a separate electronic notary commission or register to perform remote notarizations.

20. What types of technologies are out there?
DocVerify
Notarize
NotaryCam
Pavaso
Safedocs
SIGNiX
These technologies will provide notaries with all the technology that is needed to perform remote notarization.

21. Megan Walton, Director of Business
Contact Me
Megan Walton, Director of Business