NOTARY ACT/SATISFACTION OF SECURITY INTERESTS.

View NCGA Bill Details2013-2014 Session
House Bill 332 (Public) Filed Monday, March 18, 2013
A BILL TO BE ENTITLED AN ACT MAKING CORRECTIONS AND OTHER AMENDMENTS TO THE NOTARY PUBLIC ACT, MAKING OTHER CONFORMING CHANGES, AND PROVIDING FOR AN ALTERNATIVE PROCEDURE FOR SATISFACTION OF SECURITY INSTRUMENTS.
Intro. by Bryan, Stam, Glazier.

Status: Ch. SL 2013-204 (House Action) (Jun 26 2013)

SOG comments (1):

Long title change

House committee substitute to the first edition changed the long title. Original long title was A BILL TO BE ENTITLED AN ACT MAKING CORRECTIONS AND OTHER AMENDMENTS TO THE NOTARY PUBLIC ACT AND MAKING OTHER CONFORMING CHANGES, AND PROVIDING FOR AN ALTERNATIVE PROCEDURE FOR SATISFACTION OF SECURITY INSTRUMENTS.

Bill History:

H 332/S.L. 2013-204

Bill Summaries:

  • Summary date: Jul 2 2013 - More information

    AN ACT MAKING CORRECTIONS AND OTHER AMENDMENTS TO THE NOTARY PUBLIC ACT, MAKING OTHER CONFORMING CHANGES, AND PROVIDING FOR AN ALTERNATIVE PROCEDURE FOR SATISFACTION OF SECURITY INSTRUMENTS. Enacted June 26, 2013. Section 1 is effective July 1, 2013. The remainder is effective June 26, 2013.


  • Summary date: Jun 6 2013 - More information

    Senate committee substitute makes the following changes to the 3rd edition.

    Amends GS 10B-99, Presumption of regularity, providing that a notarial act will be deemed valid if it complies with the law as it existed on or before December 1, 2005 (previously, the notarial act was deemed valid only if it was performed before October 1, 2006).

    Changes the enactment clause, providing that Section 1 is still effective July 1, 2013 but the remainder of the act is effective when it becomes law (previously, the remainder of Part I of the act became effective April 1, 2013 with Part II effective when it became law, with the remainder of the act also effective when it became law).


  • Summary date: Apr 22 2013 - More information

    House amendment makes the following change to the 2nd edition.

    Repeals GS 10B-5(b)(9), the requirement for qualifying to become a notary public that the person get a recommendation from a NC publicly elected official. Effective July 1, 2013.


  • Summary date: Apr 18 2013 - More information

    House committee substitute makes the following changes to the 1st edition.

    Amends GS 47-2.2 (Notary public of sister state; lack of seal or stamp or expiration date of commission), providing that the register of deeds may rely upon the statement, as specified pursuant to this section, and is not responsible for confirming its validity or the authority of the person making it.

    Amends GS 47-50 (Order of registration omitted), GS 47-50.1 (Register's certificate omitted), and GS 47-102 (Absence of notarial seal), providing that the provisions of these sections apply to specified executions of a deed prior to October 1, 2005 (previous edition specified a date of April 1, 2013).

    Makes technical, conforming, and clarifying changes throughout.


  • Summary date: Mar 19 2013 - More information

    Amends GS 10B-20(c5), clarifying that notaries are not disqualified from performing their duties because of their employment by a party to the record or because they own stock in a party of the record to be notarized.

    Amends GS 10B-37, making clarifying changes.

    Amends GS 10B-55, excluding a personal representative from complying with the requirements of this section, (taking certain steps upon the death of a notary), if he or she provides a sworn statement in any enforcement proceedings that he or she was unaware that the deceased was a notary public at the time of death.

    Amends GS 10B-60 by creating a new subsection GS 10B-60(l), providing that the Secretary of State (Secretary) must notify the NC State Bar (State Bar) of any final decision involving a violation of subsection (a) of this section by a notary who is also a licensed attorney-at-law. The Secretary must also endeavor to send copies of court orders rendered under this section to the State Bar in cases where the notary is also a licensed attorney-at-law. Such a referral can be considered as a showing of professional unfitness, and the State Bar can administer discipline as it sees fit.

    Amends GS 10B-65, stating that documents that contain notarial errors such as date of acknowledgment, verification, or proof, or the oath or affirmation states the incorrect date, will be given legal effect as if the errors had not occurred. Validates all notary acknowledgments performed before December 1, 2005 (was, January 1, 1953). Section above applies to notarial acts performed on or before April 1, 2013 (was, May 1, 2008).

    Amends GS 10B-67 (Erroneous commission expiration date cured) and GS 10B-99 (Presumption of regularity), applying the sections to notarial acts whenever they are performed.

    Amends GS 10B-68 (Technical defects cured), making technical changes, expanding the types of technical changes that are cured automatically and do not affect the validity of a document.

    Amends GS 10B-69, making notarial certifications contained in a form issued by a state agency prior to April 1, 2013 (was, October 1, 2006) valid, provided it complied with the law at the time of formation.

    Amends GS 10B-71, maintaining that any instrument notarized by a notary that failed to take the notary oath again after being recommissioned is held valid. Applies to notarial acts performed on or after May 15, 2004, and before April 1, 2013 (was, July 8, 2009).

    Amends GS 41-2, adding a new section GS 41-2(a1), providing that upon conveyance to the trustee of a deed of trust by any or all of the joint tenants holding property in joint tenancy with right of survivorship to secure a loan, the joint tenancy will not be deemed to be severed. Upon satisfaction of the deed of trust, legal title to the property will revert to the grantors as joint tenants with right of survivorship in the respective shares as owned by respective grantors.

    Amends GS 47-2.2 (Notary public of sister state; lack of seal or stamp or expiration date of commission), making clarifying and technical changes. Provides that a proof or acknowledgment that does not require a seal or stamp of the notary to be effective must include either a statement by the notary as to such, placed near the proof area, or a reference to the statute of the commissioning state which provides no seal or stamp is required along with a statement. Such an instrument, when proofed and validated in this way, cannot be refused by a register of deeds. Acceptance of such a letter creates a presumption of the validity of such an instrument and that no seal or stamp was required. This presumption is rebuttable.

    Amends GS 47-12.2 (Subscribing witness incompetent when grantee or beneficiary), providing that the execution of an instrument may not be proved for registration by a subscribing witness when the subscribing witness is the grantee or beneficiary at the time of execution.

    Amends GS 47-14, providing that the acceptance of records with a notarial seal, even though the seal may be illegible, gives rise to presumption of validity of the seal, applies to all instruments filed and maintained by the register of deeds. The presumption is rebuttable, but a court finding otherwise cannot affect the recorded interest in real property when there are enforceable interests.

    Amends GS 47-28 (Powers of Attorney), providing that before any transfers of real property executed by an attorney-in-fact empowered by a power of attorney, the power of attorney must be registered. Provides what steps an attorney-in-fact must take depending on the different types of real property transaction taking place, as well as the requirements to record certain powers-of-attorney. Provisions apply to all real property utilizing powers-of-attorney on or after April 1, 2013.

    Amends GS 47-36.1 (Correction of errors in recorded instruments), making clarifying and technical changes. Provides that when a correction is inconsistent with the original, notice of the correction is deemed to have been given as of the time of registering the corrective affidavit. For corrective affidavits filed before, on, or after April 1, 2013, makes the following changes. Limits the need for an affidavit in times where an instrument is unchanged but re-recorded. A notary public can complete a corrective affidavit identifying the correction and may attach a new acknowledgment, with no change in priority occurring.

    Amends GS 47-41.2, 47-48, 47-50, 47-50.1, 47-51, 47-53, 47-53.1, 47-64, 47-71.1, 47-72, 47-92, 47-93, 47-94, 47-97, 47-97.1, 47-102, 47-108.6, and 47-108.11, making clarifying and technical changes. Primarily changes any applicability dates included in the sections to April 1, 2013.

    Amends GS 47-81.2 (Before United States Army etc., officers, and other service members), establishing that instruments or writings that have been proved or acknowledged before any commissioned officer of the Army, Navy, Air Force, Marine Corps, Coast Guard, or specified officer of the Merchant Marine (was, only Army or Marine Corps) are ratified, confirmed, and declared valid. Proofs and acknowledgments by any military personnel authorized by Congress are ratified, confirmed, and declared valid and will not require a seal or any affixation thereof.

    Amends GS 47-95 (Acknowledgments taken by notaries interested as trustee or holding other office) to change the date to prior to October 1, 1991 (was, January 1, 1975).

    Amends GS 47 by adding new section GS 47-108.18A (Registration of certain instruments containing a notarial acknowledgment) and GS 47-108.18B (Registration of certain instruments containing a notarial jurat), providing that notarial acknowledgments constitute a jurat in due form for all instruments that have so far been accepted for filing and registration or are now accepted for filing and registration under this Chapter or which relate to real estate in this state. In addition, a notarial jurat constitutes an acknowledgment in due form for all instruments that have so far been accepted for filing and registration or are now accepted for filing and registration under this Chapter or which relate to real estate in this state.

    Amends GS 47-108.20 to make the statute applicable to instruments recorded before April 1, 2013 (was, June 30, 1986).

    Above provisions are effective April 1, 2013.

    Amends GS 45-36.9, making clarifying and technical changes.

    Amends GS 45-36.14, creating new subsection GS 45-36.14(d), providing that a satisfaction agent does not have to give notification described in this section if (a) the creditor has authorized the agent to sign and submit an affidavit of satisfaction, (b) the agent had in his or her possession the instruments described in specified subsections of GS 45-36.15, or (c) the agent has been unable to determine the identity of the secured creditor.

    Amends GS 45-36.15 (Affidavit of satisfaction: authorization to submit for recording), making clarifying and technical changes. Expands the situations in which a satisfaction agent may sign and submit an affidavit of satisfaction when the agent has reasonable grounds to believe the secured creditor has received full payment or performance and one of the following apply: (1) the secured creditor has not submitted for a recording a satisfaction of a security instrument within the specified time frame; (2) the secured creditor has authorized the satisfaction agent to sign and submit an affidavit of satisfaction; (3) the satisfaction agent has in his or her possession the original security instrument and the original bond, note, or other instrument secured thereby with an endorsement of payment and satisfaction by one of the specified entities; (4) the satisfaction agent has in his or her possession the original security instrument intended to secure payment of money or the performance of any other obligation, together with the original instrument secured, or the original security instrument only if it sets forth the obligation and does not call for another instrument secured by it, if the instruments are more than 10 years old at the time the affidavit of satisfaction is to be signed; (5) the satisfaction agent has in his or her possession the original security instrument given to secure the bearer or holder of any negotiable instruments transferable solely by delivery, marked paid and satisfied in full and signed by the bearer or holder thereof; (6) after diligent inquiry, the satisfaction agent has been unable to determine the identity of the secured creditor.  Provides that the satisfaction agent cannot submit for recording a security instrument  for an affidavit of satisfaction without giving notice to submit of recording an affidavit of satisfaction to the identified assignees at the identified address and complying with GS 45-36.14.

    Amends GS 45-36.16 (Affidavit of satisfaction: content), providing several new requirements that an affidavit of satisfaction's content can or must meet in order for it to be deemed a valid affidavit of satisfaction.

    Amends GS 45-36.17 (Affidavit of satisfaction: form), making several conforming, clarifying, and technical changes to the affidavit of satisfaction form.

    Amends GS 45-36.18 (Affidavit of satisfaction: effect), making clarifying and technical changes.

    Amends GS 45-36.19 (Liability of satisfaction agent), providing that a satisfaction agent that erroneously records or submits for recording an affidavit of satisfaction of a security instrument is not liable if the agent properly complied with this Article, gave notification to the secured creditor in the manner prescribed by GS 45-36.14, and responded to the notification in a timely manner.

    Amends GS 45-36.24, making clarifying and technical changes.

    Part 1 of this bill, or up to GS 47-108.20, becomes effective April 1, 2013. The remainder is effective when it becomes law.


  • Summary date: Mar 18 2013 - More information

    To be summarized 3/19/13.


Printer-friendly: Click to view