The NNA’s Electronic Notary Seal Program Creating and managing notarial acts electronically in...

The NNA’s Electronic Notary Seal Program

Creating and managing notarial acts electronically in real-time

Ozie H. Stallworth, Government Affairs Manager

National Notary Association

Introduction

Goals Today Familiarize you with NNA technologies, policy, and legal

advocacy to support electronic notarization Discuss and briefly demonstrate the NNA’s ENS Program Review enacted, pending legislation (Notaries are

“creatures of legislation”) Possible efforts: OASIS, MISMO, PRIA, technology

sharing, other possibilities

Electronic Notary Seal Program

The National Notary Association’s Electronic Notary Seal (ENS) Program A national effort A collaborative effort

The ENS Program is an online web application (like online banking) that provides states and private industry with: Technologies to facilitate secure electronic notarization within

and across jurisdictions Standards to promote interoperability across transactional

partners relying on notarization The PRIMARY goal of the ENS Program is to authenticate

Notaries in real time Must be FREE to participating states Must allow ANYONE to verify the status of an electronic notary

seal at no cost in real time

ENS Program – Online Notary Management Enables state government to manage Electronic Notary Seals

State can issue, revoke, suspend, and renew Electronic Notary Seals securely online

All relying parties can independently verify the status of an ENS in real time using secure web services

Enables private industry to develop electronic document management systems that incorporate: Notary Authentication – verify status of ENS in real time

Enables development of competitive vendor solutions for electronic document management that depend upon trusted notaries Relies on web services and X.509 digital certificates for interoperability

across systems Relies on open standards for greater acceptance and ease of use

ENS Program Justification

1. Lack of uniform legislative/regulatory framework hinders progress.

Inconsistent (sometimes competing) state notary laws and regulations lead to confusion in the marketplace (Is it legal? Will it “hold up” in court?)

CA AB 578 – Insufficient (San Diego criminal case) NC SB 671 – Sufficient (based on Model Notary Act)


2. Industry complains Notary system lacks technological predictability.

Industry needs to do it “one way” across all 50 states, or else the cost-saving benefits of electronic documents cannot be realized.

To accomplish this goal, the NNA has confirmed with state government officials and industry leaders that…

A consistent, interoperable technology for notary authentication is needed by industry to implement national electronic document systems.

A consistent, interoperable approach will also fuel a competitive marketplace among vendors offering such solutions.


3. Presumption that costs to entry are formidable has negatively impacted progress in electronic notarization.

Lack of clear guidelines for authenticating notaries means cost of compliance for business is too high.

State governments are finding it difficult to shoulder the burden of providing this interoperable technology.

A need for a no- or low-cost notary authentication technology is of paramount concern.

ENS Program Participants Industry

Early Adopters - mortgage banking, real estate, title companies, legal filing vendors

Countrywide, Stewart Title State Government

PA (Department of State, Four County Recorders) AZ (Secretary of State, Maricopa County Recorder) CA (San Bernardino and Orange County Recorders) TX (limited counties) FL (Stewart Title) OH (Stewart Title)

Notaries Generally limited to corporate environments Regulated through the ENS Program by state officials

Benefits of ENS Program - Government

Enables state government to regulate notaries in the electronic age

Enables state government to support electronic notarization pilots securely

Enables relying parties to verify facts of a notarial act performed on both paper and electronic documents

Can support the certification of public documents between states and internationally (eApostilles)

Prevents fraud and abuse of notarial office by enabling faster, more accurate investigations

Protects citizens from identity crimes and document fraud

Benefits of ENS Program - Industry Provides a Service Oriented Architecture that allows private

industry to focus on core technology development rather than eNotarization development

Promotes development of competitive electronic transaction technologies relying on eNotarization

Provides widely accepted standards and technologies to enable real-time authentication of notaries

Benefits of ENS Program - Notaries Facilitates emergence of a burgeoning “eNotary” market

where competitive solutions translate into competitive pricing for the average notary.

Provides a common (national and international) notary authentication protocol.

Further promotes the professionalization of the American notary office.

Protects the public from fraud and abuse of the Notary office.

What is an Electronic Notary Seal?

Electronic Documents Digital Certificate

Hardware Based Stored on USB-enabled device or “smart card”

Browser Based Stored in Windows

Paper Documents Bar Code

NOTARY AUTHORITY

How does a Notary receive an Electronic Notary Seal?

Notary Completes Application through State

Notary must satisfy legal requirements and be identified in person

State authorizes Notary to receive ENS

Notary receives authorization to use ENS

* Notary authenticates to Notary Authority to release seal* ENS may be validated

independently by third parties

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1. Meets with document signers,verifies signers’ identity, capacity and willingness to sign

2. Prior to notarizing document, electronic signing system verifies Notary’s ENS through the Notary Authority.

3. Electronically notarizes document using ENS.

What happens when a Notary uses an Electronic Notary Seal?

NOTARY AUTHORITY

How does the state revoke an Electronic Notary Seal?

State Official authorizes revocation or suspension

Notary receives notification of revocation

* Notary’s attempt to authenticate is denied* ENS revocation/suspension may be validated independently by third parties

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Call to Action

The NNA is now asking the state of Delaware to participate. The NNA urges states to consider adoption of the Model

Notary Act, Article III as a “first step” if authorizing legislation does not already exist.

Formation of state-specific eNotarization Task Force in California underway; other state task forces a possibility, or perhaps even a national task force

Questions and Follow-up by industry.

Demo - The ENS Portal

The NNA’s Electronic Notary Seal Program Creating and managing notarial acts electronically in...

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