New York Remote Online Notary Law Signing – Finance and Banking

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Holland & Knight

30 December 2021

Highlights


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How RONs Generally Work

New York Gov. Kathy Hochul signed Senate Bill 1780C on Dec. 22, 2021,
which allows the state’s notaries to conduct remote online
notarizations (RON). The law is slated to be effective on June 20,
2022. New York joins more than 37 states that already allow for
RONs. When New York notaries start completing RONs next year,
California (which has pending RON legislation) and several other
key states will remain notable exceptions that do not permit use of
this notarization technology.

For a detailed explanation on how RONs work and business cases
for its implementation, please see the related articles, “Remote Online Notarization Will Support Business
Continuity,” March 24, 2020, and “Remote Online Notarization in Mortgage Loan
Closings,” April 2021.

Analysis of New York’s RON Law

The legislation just signed into law mirrors, in many ways, laws
already in force in the majority of states across the country and
gives the New York Secretary of State significant regulatory
authority over its implementation. For example, it requires the New
York Secretary of State to provide regulations setting forth
standards for ensuring the audio/video conference used for the
notary session is secure, the notary session is conducted in real
time and the notary is able to communicate with and identify the
signer at the time of the notarial act. Identification of the
signer is expected to require credential analysis of the
signer’s ID card (i.e., a passport or driver’s license) as
well as correctly answering four out of five knowledge-based
authentication questions within a set period of time (i.e., who is
your car loan with, what address have you never lived at, etc.).
Getting timely and easy-to-understand regulations that can be
implemented by the industry will be necessary for an on-time
roll-out. Also, please keep in mind that the knowledge-based
authentication questions are generally generated from a U.S. Social
Security number, thereby creating potential obstacles for foreign
nationals. New York notaries who conduct RONs will need to keep a recording
of the session for 10 years, along with the type of identification
shown to the notary. Notaries will also need to register with the
state and will be permitted to perform RONs only when they are
located in New York, although signers can be outside of the
state.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances. POPULAR ARTICLES ON: Finance and Banking from United States

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