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NC Administrative Rules 2025 (NCAC 07J)

Rule/Regulation

State: North Carolina

Effective: July 01, 2025

Summary

New administrative rules in 18 NCAC 07J apply almost exclusively to technology providers (IPEN and remote notarization platforms) and Custodians of Electronic Notary records.

Affects
  1. Adds 18 NCAC 07J .0101, .0102, .0103, .0104, .0105, .0106, .0107, .0108, .0109, .0110, .0111, .0112, .0113, .0114, .0115, .0116, .0201, .0202, .0203, .0204, .0205, .0206, .0207, .0208, .0209, .0210, .0211, .0212, .0213, .0214, .0215, .0216, .0301, .0302, .0303, .0304, .0305, .0306, .0307, .0308, .0309, .0310, .0311, .0312, .0313, .0314, .0315, .0401, .0403, .0404, .0405, .0406, .0407, .0408, .0409, .0410, .0411, .0412, .0413, .0414, .0415, .0416, .0417, .0418, .0419, .0420, .0421, .0422, .0423, .0501, .0502, .0503, .0504, .0505, .0602, .0603, .0604, .0605, .0606, .0607, .0608, .0609, .0610, .0611, .0612, .0613, .0614, .0615, .0616, .0617, .0618, .0619, .0620, .0621, .0622, .0623, .0624, .0625, .0626, .0627, .0628, .0629, .0701, .0702, .0703, .0704, .0705, .0706, .0801, .0802, .0803, .0804, .0805, .0806, .0807, .0808, .0809, .0810, .0811, .0812, .0813, .0901, .0902, .0903, .0904, .0905, .0906, .0907, .0908, .0909, .0910, .1001, .1002, .1003, .1004, .1005, .1006, .1007, .1008, .1009, .1010, .1011, .1012, .1013, .1014, .1015, .1016, .1017, .1018, .1019, .1020, .1021, .1022, .1023, .1101, .1102, .1103, .1104, .1201, .1202, .1203, .1204, .1205, .1206, .1207, .1208, .1209, .1210, .1301, .1302, .1303, .1304, .1305, .1306, .1307, .1401, .1402, .1403, .1404, .1405, .1406, .1407, .1408, .1409, .1410, .1411, .1412, .1413, .1414, .1415, .1416, .1417, .1418, .1419, .1420, .1421, .1422, .1423, .1424, .1425, .1426, .1427, .1428, .1429, .1501, .1502, .1503, .1504, .1505, .1506, .1507, .1601, .1602, .1603, .1604, .1605, .1606, .1607, .1608, .1609, .1610, .1611, .1612, .1613, .1614, .1701, .1702, .1703, .1801, .1802, .1803, .1804, .1805, .1806, .1807, .1808, .1809, .1810, .1811, .1812, .1813, .1814, .1901, .1902, .1903, .2001, .2002, .2003, .2004, .2005, .2006, .2007, .2008, .2009, .2010, .2011, .2012, .2013, .2014, .2015, .2016, .2017, .2018, .2019, .2020, .2021, .2022, .2101, .2102, .2103, .2201, .2202, .2203, .2204, .2205, .2206, .2207, .2208, .2209, .2210, and .2211.
  2. Amends 18 NCAC 07J .0402 and .0601.
Changes

General Provisions

  1. Defines “break in service”, “communication technology recording”, “custodial Electronic Notary”, “cybersecurity incident”, “depository”, “electronic notary solution”, “encryption”, “existing technology providers”, “geolocation”, “journal convenience copy”, “key individuals”, “protocols” or “department’s scientific, architectural, and engineering protocols for technology providers”, “session record”, “supporting vendor”, “transferee”, “transferor”.
  2. Specifies that only authorized technology providers may offer Electronic Notary solutions to North Carolina Electronic Notaries.
  3. Requires that providers offering multiple types of Electronic Notary solutions comply with all applicable rules in Subchapter 07F for each solution type.
  4. Prohibits technology providers from assigning, transferring, or selling their authorization.
  5. Authorizes designations, as specified, for approved solutions, such as “approved North Carolina IPEN solution,” only during the effective period of approval.
  6. Clarifies that Department authorization does not imply endorsement of a provider’s services.
  7. Requires providers to respond to Department inquiries within specified timeframes, with extensions available under certain rules.
  8. Requires providers to notify Electronic Notaries within 3 business days of receiving legal demands for records, unless prohibited by law or related to a Department investigation.
  9. Mandates that service agreements include guaranteed uptime and reimbursement terms for outages.
  10. Prohibits display of logos, symbols, ads, or pre-recorded media on screen during notarial transactions.
  11. Requires providers to follow the Department’s published technical protocols.
  12. Mandates implementation of all required plans and policies in Subchapter 07J.
  13. Requires providers to ensure Electronic Notaries have continuous access to their records and assistance in transferring them during service interruptions.
  14. Limits use of non-anonymized transaction data to fraud mitigation and facilitation of the transaction that is specific to certain matters, as specified.
  15. Permits offline backup retention of copies of data associated with a notarial transaction beyond standard periods if a provider has a policy in place and deletion is secure.
  16. Requires secure deletion of data after session finalization of the session record unless retention is required by rules in Subchapter 07J.
  17. Requires providers to notify the Department before implementing material changes, as specified, to their solutions.
  18. Prohibits implementation of material changes without Department approval to a written notice pursuant to the rules in Section .0100 and unless the provider complies with Section 0500.
  19. Requires timely notice, as specified, to the Department of changes in business structure or status, as specified.
  20. Specifies that written notices must include both the change and the corrected information.
  21. Requires 5 calendar days’ notice to Electronic Notaries of planned maintenance, including timing and approximate duration.
  22. Requires immediate notice to the Department for outages exceeding 4 hours and upon restoration.
  23. Requires providers to notify Electronic Notaries within 3 days of a service break, including the reason, duration, access status, and actions the provider requires Electronic Notaries to take.
  24. Requires providers to notify the Department within 72 hours of discovering a reportable incident involving data or cybersecurity, as specified.
  25. Specifies the information, as specified, that must be included in incident notifications.
  26. Requires providers to notify affected individuals as required by applicable law (for example, Identity Theft Protection Act).
  27. Requires annual compliance verification or notice of non-renewal, except for licensed platforms.
  28. Specifies that compliance verification must be submitted within 60 days before approval expiration or with a renewal application.
  29. Requires that compliance verification be based on due diligence.
  30. Requires that a person with binding authority sign the verification under penalty of perjury.
  31. Requires 90 days’ notice to the Department if a provider will not seek renewal.
  32. Requires providers to notify Electronic Notaries and subscribers of nonrenewal and ensure Notaries have access to records.

Technology Provider Application Procedures

  1. Requires technology provider applicants to submit a complete application, demonstrate the solution, and pay applicable fees.
  2. Requires separate applications for each type of solution.
  3. Specifies a nonrefundable $5,000 fee for platform licenses and no fee for other solutions.
  4. States that all application representations are binding and made under penalty of perjury.
  5. Prohibits designating the entire application as confidential or a trade secret.
  6. Requires specific item-by-item designation of confidential or trade secret information in compliance with the North Carolina Trade Secrets Protection Act and the confidentiality provisions of GS 132-1.2.
  7. Requires submission of both redacted and unredacted versions of confidential and trade secret filings.
  8. Requires labeling of redacted documents submitted pursuant to Rule 07J .0307 in the title, filename, and header.
  9. Requires certification that confidential and trade secret designations are made in good faith.
  10. Presumes certain plans and documents, as specified, are confidential or trade secrets if they are designated as such.
  11. Requires providers to notify the Department of changes to application information before approval of the application.
  12. Allows a technology provider to withdraw its applications before a decision, with a signed, written notice.
  13. Allows resubmission of an application within 45 days without a new fee if previously rejected or withdrawn.
  14. Requires the Department to notify applicants of approval, denial, or incompleteness with reasons stated.
  15. Requires renewal applications to be submitted 90–120 days before expiration.
  16. Requires applications to include information from this 18 NCAC 07J .0401 and 18 NCAC 07B .0422.
  17. Requires inclusion of the provider’s legal and operational names.
  18. Requires contact information as specified in referenced rules.
  19. Requires certification of business registration and active status.
  20. Requires disclosure of Electronic Notary services, as specified, in other jurisdictions over the past 10 years.
  21. Requires naming a compliance contact who has completed the Electronic Notary and technology provider course and is a key individual.
  22. Specifies compliance contact duties including legal compliance monitoring and communication with the Department.
  23. Requires listing and disclosure of third-party vendors and services, as specified, involved in the Electronic Notary solution.
  24. Requires listing and disclosure of services of supporting vendors for specific technical services.
  25. Requires disclosure of vendors, entities and affiliates with access to notarial data at rest.
  26. Requires disclosure of certifications, as specified, and compliance reports.
  27. Requires disclosure of information related to debarments, as specified, involving the applicant or key individuals.
  28. Requires disclosure of voluntary exclusions in lieu of debarment.
  29. Requires disclosure of findings in civil legal actions related to dishonesty or data misuse and lists the required content, as specified for disclosures.
  30. Requires disclosure of disciplinary actions within the past 10 years.
  31. Lists the required content, as specified, for disciplinary action disclosures.
  32. Requires disclosure of bankruptcy proceedings within the past 10 years and lists the required content, as specified, for bankruptcy disclosures.
  33. Requires inclusion of website URL and form required by 18 NCAC 07B .0422(6).
  34. Requires disclosure of IT audit frequency and submission of a summary.
  35. Requires the solution to be available for Department evaluation.
  36. Requires demonstration of the solution for compliance with rules.
  37. Requires step-by-step demonstration of how notarial transactions will be performed.

Technology Provider Standards

  1. Requires restricted access, as specified, to Electronic Notary accounts and data.
  2. Requires multi-factor authentication for Electronic Notary to access the provider’s solution.
  3. Requires inactivity warning after 15 minutes and log out after 5 minutes of inactivity post-warning.
  4. Requires creation of a public-facing web page, submission of a single URL to the Department, and notification of URL changes withing 5 business days.
  5. Lists the required website content, as specified, and order.
  6. Requires encryption of data at rest and in transit.
  7. Requires domestic storage of notarial data at rest and verification of compliance.
  8. Requires secure, climate-controlled data storage facilities and physical security measures at data centers.
  9. Requires certification of compliance with Rules 07J .0612 and .0613, with initial and subsequent applications, and with Rule 07J .0211, if applicable..
  10. Requires use of supported and up-to-date hardware, software, and firmware, as specified.
  11. Requires a configuration management plan, to cover listed requirements, as specified.
  12. Requires access control, as specified, based on user roles and employment.
  13. Requires vendors to maintain equivalent access controls.
  14. Requires weekly vulnerability scans to detect and remediate IT security vulnerabilities.
  15. Requires third-party IT security audits every three years that comply with Rule 07J .
  16. 0622 that are conducted by Certified Information Systems Auditors or the equivalent.
  17. Requires submission of recent IT audit summaries on initial and subsequent applications and on verification of compliance with Rul 07J .0211.
  18. Lists the required content, as specified, of IT audit summaries.
  19. Requires logging and monitoring to prevent cybersecurity incidents.
  20. Requires a security plan for physical and IT compliance.
  21. Requires a tested and annually updated incident response plan that addresses the capabilities of rules in Subchapter07J Section 600.
  22. Requires incident detection, response, and evidence preservation in response to any cybersecurity incident and retention of incident logs for three years.
  23. Requires a contingency plan for service disruptions.
  24. Specifies required contents, as specified, of the contingency plan.

Electronic Signature and Seal Standards

  1. Requires electronic seals to be applied only by Electronic Notaries using approved IPEN solutions and platforms.Requires solutions to support compliance with electronic signature and seal rules, as specified.
  2. Requires solutions to allow Electronic Notaries to affix electronic signatures.
  3. Requires an Electronic Notary’s electronic signature to match the Electronic Notary’s handwritten signature or be handwritten electronically.
  4. Requires Electronic Notaries to be able to view, delete, and reapply signatures and seals.
  5. Requires providers to update electronic seals and signatures upon registration changes.

Electronic Journal Standards

  1. Requires provision of an electronic journal for notarial transactions.
  2. Requires electronic journal design to support compliance with journal rules.
  3. Requires a separate journal entry for each notarial act, canceled notarial act, or supplemental journal entry.
  4. Requires a notes field with at least 3,000 characters.
  5. Requires review and confirmation by the Electronic Notary before committing entries.
  6. Prohibits amendments to committed journal entries.
  7. Requires ability to print journal entries.
  8. Requires searchable journal functionality.
  9. Requires ability to annotate and distinguish entries.
  10. Requires Electronic Notary access to view, print, download, and transfer entries.
  11. Requires transfer and deletion of journal upon relationship termination, as defined.
  12. Requires support for supplemental journal entries.

Communication Technology Standards

  1. Requires access to notarial sessions to be limited to authorized participants, as specified.
  2. Requires Electronic Notaries to view principal applying their electronic signature.
  3. Requires video standards for facial comparison with ID credentials, and CART captioning, and visual communication, as defined.
  4. Requires video window placement and customization features.
  5. Requires audio standards for clarity, volume, and synchronization.
  6. Requires support for live text communication and CART captioning, and customization of text outputs, as specified.
  7. Requires recording capability of the notarial session and control over the recording by the Electronic Notary.
  8. Requires preservation of all audio visual, and written session content.
  9. Requires metadata for documenting the recording format and duration.
  10. Exempts judicial recordings authorized by GS 10B-1349(d) from these rules.

Depository Services Standards

  1. Specifies that depository rules apply to IPEN and platform providers..
  2. Requires creation of a session record at the end of each notarial session, including journal entries, recordings, and metadata; also applies to traditional Electronic Notaries under certain conditions.
  3. Requires each session record to be digitally signed by the depository..
  4. Requires a unique session identifier composed of a depository ID, Electronic Notary commission number, date, and a sequential session number formatted, as prescribed.
  5. Requires session records to be searchable by fields, as prescribed, such as session ID, Electronic Notary name, principal names, session time, and notarial act type.
  6. Prohibits changes to session records once created until transferred to a custodian.
  7. Requires session records and logs to be stored in at least 2 geographically separate facilities.
  8. Requires transfer of session records to a custodian within a timeframe, as specified, or upon request.
  9. Requires notification to the Department and compliance with the custodian rules if transfer deadlines cannot be met.
  10. Requires secure deletion of session records within 45 days of confirmation from the custodian.
  11. Prohibits deletion of session records until receipt and validation by the custodian is confirmed.
  12. Requires depositories to allow Electronic Notaries to have free access to view, copy, print, and download their session records at any time.
  13. Prohibits depositories from ceasing operations until all records are transferred to designated custodians.
  14. Requires creation of a unique journal entry identifier by appending a four-digit entry number to the session ID.
  15. Requires creation of a session record log entry for remote oaths or affirmations by traditional Notaries who do not create journal entries.
  16. Requires the depository to embed metadata, including session ID, Electronic Notary name, act counts, and timestamps in the session record before digital signing.
  17. Requires depositories to create a session record log for each session.
  18. Lists the required contents, as specified, of a session record log, including session details, Electronic Notary and principal information, and payment data.
  19. Requires depositories to update the Department’s database with session details after each notarial session with certain information, as specified.
  20. Requires a depository to retain session record logs for at least 15 years.
  21. Requires depositories to transfer session record logs to custodians along with session records, except for Custodial Notaries.
  22. Requires transferors to update the Department’s database with transfer details, as specified, after validation by the custodian.

Bridge Provisions

  1. Allows existing providers to continue offering its previously approved IPEN solutions until its first application under Rule 07J .1303 has been approved or denied, discontinuation, or July 1, 2026, whichever is earlier
  2. Requires existing providers to apply for IPEN authorization no earlier than July 1, 2025 and no later than April 1, 2026, or notify the Department of discontinuation by April 1, 2026.
  3. Requires compliance with specified rules during the bridge period before full authorization.
  4. Requires application and approval before implementing reportable changes during the bridge period.

IPEN Solution Standards

  1. Requires IPEN providers to verify certain matters, as specified, before creating Electronic Notary accounts.
  2. Requires IPEN providers to re-verify an Electronic Notary if the Notary presents a different registration certificate.
  3. Requires the IPEN provider to verify an Electronic Notary's active status before each session.
  4. Prohibits an IPEN provider from granting full session access if an Electronic Notary’s status cannot be verified; allows read-only access to an Electronic Notary’s records.
  5. Allows an IPEN provider to re-enable full access once Electronic Notary status is verified.
  6. Requires the Electronic Notary to disclose their custodian before starting a session if the IPEN provider does not offer custodial services.
  7. Requires IPEN providers to render session records tamper-evident and digitally sign them in PDF/A format.
  8. Requires IPEN providers to publish and display disclosures under various rules, as specified.
  9. Specifies required content for IPEN disclosures including retention, availability, and issue resolution.
  10. Requires IPEN disclosures to be presented in a structured table format, as specified.
  11. Requires IPEN applicants to meet statutory and rule-based requirements, excluding certain sections.
  12. Specifies that IPEN approval is valid for 3 years.
  13. Requires submission of the designated IPEN application form for approval.
  14. Requires IPEN providers to list key individuals with roles and organizational structure.
  15. Requires IPEN providers to submit background checks and declarations, as specified, for each key individual.
  16. Specifies that background checks if IPEN providers’ key individuals are valid for 3 years or until updated.
  17. Requires timely updates by IPEN providers using the form, as specified, for changes to key individuals.

Platform Standards

  1. Requires platforms to integrate communication technology, geolocation, credential analysis, identity proofing, electronic journaling, electronic signature and seal, and depository functions.
  2. Allows traditional Electronic Notaries to use platforms for oaths and, if they designate a custodian, journal access.
  3. Requires platforms to create session records for traditional Electronic Notaries who make journal entries.
  4. Prohibits platforms from allowing traditional Electronic Notaries to use electronic signatures, seals, or perform remote acts beyond remote oaths and affirmations.
  5. Requires platforms to accommodate users with vision, hearing, or speech impairments using accommodations, as specified.
  6. Requires platforms to detect GPS capability on principal’s device at the time of the remote electronic notarial ac.
  7. Requires platforms to communicate a principal’s location or the principal’s device GPS limitations to the Electronic Notary.
  8. Requires platforms to notify the Electronic Notary if a principal’s image or voice appears altered, unnatural, or simulated.
  9. Allows platforms to bypass credential analysis if the principal is confirmed by the Electronic Notary to be personally known to the Notary.
  10. Requires platforms to verify certain matters, as specified, before creating Electronic Notary and Traditional Notary accounts.
  11. Requires platforms to re-verify an Electronic Notary if the Electronic Notary presents a different commission or registration certificate.
  12. Requires verification of the Traditional or Electronic Notary’s status before each session.
  13. Prohibits platforms from allowing Electronic Notaries to perform remote electronic notarial acts if the Electronic Notary’s status cannot be verified, but allows them to permit Notaries perform remote oaths and affirmations.
  14. Prohibits platforms from granting access to traditional Notaries to administer remote oaths and affirmations if the Notary status is inactive, but requires platforms to allow them read-only access to their journal records.
  15. Requires platforms to allow Traditional Notaries in active status or an Electronic Notary whose registration is inactive but whose commission is active to administer oaths, create related journal entries, and have read-only access existing journal entries.
  16. Allows platforms to restore a Traditional Notary’s or Electronic Notary’s privileges at any if their commission is active.
  17. Requires platforms to render session records tamper-evident and digitally signed them in PDF/A format.
  18. Requires platforms to require Electronic Notaries to enter the count of oaths without principal signatures.
  19. Requires platforms to provide a field for entering oath counts without signatures.
  20. Requires platforms to calculate monthly fees owed to the Department for all notarial acts performed by all Notaries using the platform by multiplying all notarial acts by $5 per act.
  21. Prohibits platforms from deducting fees owed to the Department from fees paid by principals to Electronic Notaries.
  22. Requires platforms to remit their monthly fees due to the Secretary of State within 30 days of the reporting month.
  23. Requires platforms to submit a monthly fee remission log to the Department.
  24. Lists the required contents of the fee remission log, as specified, including session and journal data.
  25. Requires platforms to retain fee remission logs for at least 5 years.
  26. Requires platforms to publish and display additional disclosures.
  27. Lists the required content for platform disclosures, as specified, including retention, devices, and support.
  28. Requires platforms to publish their additional disclosures in a structured table format, as specified.
  29. Requires platform applicants to demonstrate compliance with certain statutes and rules, as specified.
  30. Specifies that platform licenses are valid for 1 year.
  31. Requires platforms applying for approval to submit the designated platform license form, as prescribed.
  32. Requires platforms to list key individuals with roles and organizational structure.
  33. Requires platforms to provide certain information, as specified, for each key individual.
  34. Specifies that platform background checks are valid for 3 years or until updated.
  35. Requires platforms to make timely updates and use the form, as prescribed, for changes to key individuals.

Credential Analysis Standards

  1. Defines key terms, as specified, that are used in credential analysis standards.
  2. Requires credential analysis providers to conduct a trial before applying for authorization.
  3. Requires credential analysis providers to test its solution with 100 demographically representative adults, including at least 10% fraudulent credentials and 10% authentic credentials presented by demographically similar impostors within 5 years of age of the depicted individual.
  4. Requires credential analysis providers to report trial results including success and error rates, as specified.
  5. Requires credential analysis providers to conduct further trials every 3 years or after material changes are reported to the Department.
  6. Requires credential analysis solutions to test credentials as specified in Rule 07J .1607.
  7. Requires a credential analysis solution to verify real-time control of the credential, authenticate credential integrity and identity, use liveness detection if the principal is remote, display the credential to the Electronic Notary, and comply with relevant rules.
  8. Requires a credential analysis solution to deliver credential analysis outcomes of remote principals to Electronic Notaries, and of Notaries to IPEN providers pursuant to Rule 07J .1201.
  9. Requires a credential analysis solution to detect and report altered, unnatural, or simulated images.
  10. Requires a credential analysis solution to preserve confidentiality of all verification data.
  11. Prohibits a credential analysis solution to store credential analysis data after the process concludes.
  12. Requires a credential analysis solution to publish the information required by Rule 97J .1613 and display additional information as required by Rule 07J .1614.
  13. Specifies required content for additional credential analysis disclosures, as specified, including trial results and device data.
  14. Requires credential analysis disclosures to be presented in a structured table format, as specified.
  15. Requires credential analysis applicants to meet certain statutes and rules, as specified, excluding certain sections.
  16. Specifies that credential analysis provider approval is valid for 3 years.
  17. Requires a credential analysis solution to submit the credential analysis application form, as specified.

Identity Proofing Standards

  1. Defines key terms used in identity proofing standards.
  2. Requires identity proofing providers to conduct a trial before applying for authorization.
  3. Requires identity proofing providers to test its solution with 100 U.S. demographically representative adults, including at least 10% of the tests assessing impostors who attempt to complete the test using the information of other individuals.
  4. Requires reporting of trial results including success and error rates, as specified.
  5. Requires identity proofing trials every 3 years or after material changes reported to the Department pursuant to Rules 07J .0201 and .0202.
  6. Requires identity proofing solutions to test identity pursuant to Rules 07J .1807-.1809.
  7. Specifies knowledge-based authentication quiz requirements for identity proofing.
  8. Allows one retake of the knowledge-based authentication quiz with 40% new questions if the first attempt fails.
  9. Requires an identity proofing solution to deliver identity proofing test outcomes of remote principals to Electronic Notaries, and of Notaries to IPEN providers pursuant to Rule 07J .1201 or Rules 07j .1410 and .1411.
  10. Requires an identity proofing solution to keep confidential all identity proofing data.
  11. Prohibits an identity proofing solution to store of identity proofing data after the process concludes.
  12. Requires an identity proofing solution to publish the information required by rule 07J .1813 and display the information required by Rule 07J .1814.
  13. Specifies required content for identity proofing disclosures including method and trial results.
  14. Requires identity proofing disclosures to be presented in a structured table format, as specified.
  15. Requires identity proofing applicants to meet certain statutes and rules, as specified, excluding certain sections.
  16. Specifies that identity proofing approval is valid for 3 years.
  17. Requires identity proofing solutions to submit the designated identity proofing application form, as specified.

Custodial Services Standards

  1. Specifies that custodial rules apply to third-party custodians and IPEN and platforms that are custodians.
  2. Requires custodians to confirm provide a receipt to confirm the integrity of transferred session records and logs to a transferor.
  3. Requires custodians to store session records unchanged upon receipt from a transferring depository.
  4. Requires custodians to provide Electronic Notaries access to their session records, as specified, within 48 hours at no cost.
  5. Requires custodians to make Notaries’ session records searchable by specified fields.
  6. Requires custodians to store records in at least two geographically separate facilities.
  7. Requires custodians to retain original and supplemental session records for at least 10 years unless transferred.
  8. Requires custodians to transfer records to another custodian within 10 days of request or contract expiration.
  9. Prohibits custodians from deleting records transferred to a new custodian until receipt and validation by the new custodian.
  10. Allows custodians to stored records for extended periods of time with written authorization from the Electronic Notary.
  11. Requires custodians to provide a way to mark session records required to be retained under Rule 07J .2012.
  12. Requires custodians to retain records beyond 10 years if directed by the Department pursuant to an investigation or legal notice requiring the custodian, Notary or principal to preserve the record.
  13. Prohibits a custodian from deleting records required to be retained under Rule 07J .2012 until legal obligations end.
  14. Requires custodians to log the date the session record was deleted.
  15. Requires custodians to retain session record logs for at least 15 years.
  16. Requires transfer of session record logs with session records.
  17. Requires custodians to update the Department’s database upon validated transfer with information, as specified.
  18. Requires custodians to provide 60-day notice before ceasing custodial services due to business changes, as specified.
  19. Prohibits custodians from ceasing services until all session records and associated session logs are transferred to custodians designated by Notaries.
  20. Requires custodians to publish and format additional disclosures provided by rules, as specified.
  21. Lists the required content for additional custodian disclosures, as specified.
  22. Requires custodian disclosures to be presented in a structured table format, as specified.
  23. Requires custodian applicants to meet certain statutes and rules, as specified, excluding certain sections.
  24. Specifies that custodial approval is valid for 3 years.
  25. Requires submission of the designated custodial services application form, as specified.

Custodial Notaries

  1. Provides that custodial services rules apply only to Electronic Notaries approved as custodians.
  2. Deems an Electronic Notary approved as a Custodial Notary upon compliance with 18 NCAC 07H .0506 and submission of a written agreement.
  3. Deems Custodial Notaries as custodians and technology providers who must comply with Rule 07J .2204.
  4. Requires Custodial Notaries to comply with specified rules.
  5. Requires custodial Notaries to maintain 2 copies of each session record on separate devices and to ensure 1 copy is electronic.
  6. Allows Custodial Notaries to retain records after registration ends if they comply with the custodial Notary rules.
  7. Prohibits a Custodial Notary from providing custodial services if barred by disciplinary action.
  8. Prohibits former Electronic Notaries from taking custody of new records after their Electronic Notary registration ends.
  9. Requires annual verification of compliance and service continuation by Custodial Notaries on a form, as specified.
  10. Requires submission of the annual verification form by December 31 each year.
  11. Ends a Custodial Notary’s obligations upon verification of record expiration or transfer.

Analysis

This new law update is the eighth in a series of law updates on the Phase III rules adopted by the North Carolina Secretary of State. It adds to Subchapter 07J no fewer than a staggering 281 new rules and amends 2 others which apply to providers of technology for in-person electronic and remote electronic notarial acts. North Carolina Notaries who review this new law update may wish to scan these over these requirements to appreciate the uprecedented and far-reaching responsibilities of technology providers who wish to apply and operate technology solutions in North Carolina, but ultimately Notaries will only be required to select an approved provider from a list appearing on the Secretary of State's website, and not master these rules.

Read the Subchapter 07I administrative rules (see pages 76-117).

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