NY Rules Implementing S 2373 | NNA

NY Rules Implementing S 2373

Notary Law Update: NY Rules Implementing S 2373

State: New York

Summary:

The final rules implementing Senate 2373, which was enacted last year and permits county recorders to accept electronic documents for recordation in the land records, requires electronic signatures used by Notaries to conform to four key standards as espoused by the Model Notary Act of 2010 and the National Association of Secretaries of State Electronic Notarization Standards. In addition, the rules specifically require Notaries to electronically notarize only when the signer of the electronic document affecting real property is in the Notary’s physical presence and can be identified as required by New York state law.

Signed:  September 14, 2012

Effective:  September 19, 2012

Chapter: Rule OFT-29-12-00011

Affects:

Amends Part 540 of Title 9 of the New York Codes, Rules and Regulations (NYCRR)

Changes:
  1. Adopts final rules for electronic recording in New York.
  2. Provides that a Notary shall perform a notarization of an instrument affecting real property that exists as an electronic record only where the signatory appears in person before the Notary at the time of notarization to execute the record or to affirm a prior execution, as permitted by New York law.
  3. Provides that the methods a Notary uses to identify a signatory shall be as prescribed by New York state law.
  4. Clarifies that a recording officer is not required to verify or authenticate electronic signatures or notarizations on an instrument affecting real property.
  5. Provides that electronic signatures used by a Notary on an instrument affecting real property shall comply with section 291-i(c) of the Real Property Law, and shall be: (1) unique to the Notary; (2) capable of independent verification; (3) under the notary’s sole control; (4) attached to, or logically associated with, the electronic record in such a manner that it can be determined if any data contained in the electronic record has been changed subsequent to the electronic notarization; and (5) implemented in accordance with New York law, rules and regulations and PRIA Notary version 2.4.1, October 2007 standards.
Analysis:

Senate 2373 enacted last year, paved the way for real property records to be submitted in electronic form and recorded in the public land records of New York state. Senate 2373 stated that any signature requirement on an electronic real property record is satisfied by an electronic signature of a Notary Public or other person authorized to notarize or take acknowledgments. The state electronic facilitator was tasked with publishing security standards for electronic recording, and these rules are now final. The final rule requires electronic signatures used by Notaries to conform to four key standards as espoused by the Model Notary Act of 2010 and the National Association of Secretaries of State Electronic Notarization Standards. In addition, the rules specifically require Notaries to electronically notarize only when the signer of the electronic document affecting real property is in the Notary’s physical presence and can be identified as required by New York state law.

To read the text of the administrative rule, download the PDF below.

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