Alabama Notary Bonds
Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all your Alabama notary bond needs.
What Are They?
Alabama notary bonds play an important role in preventing fraud. Some important documents that require notarization include wills, power of attorney, or a promissory note agreement. You have to show proof of your identity before signing the document in the presence of the notary, who would witness your signature and apply his or her official notary stamp.
While notarial malfeasance or negligence is not common, it is possible, which opens the door for fraud that can cause financial harm to innocent parties. An Alabama notary bond helps deter fraud by serving as a notary’s guarantee to carry out all notarial duties in complete compliance with applicable state laws and the standards of the profession. It also provides a source of funds for compensating anyone who experiences a financial loss because of the notary’s unlawful or unethical actions.
Who Needs Them?
Anyone applying for commissioning by a county probate judge as a notary in Alabama must purchase a $25,000 Alabama notary bond to protect the public. The bond must have the same 4-year term as an Alabama notary commission. A new bond must be purchased every time the commission is renewed.
An Alabama notary bond provides financial protection for the public, not for the notary who purchases it. Depending on the nature of the fraud and the extent of the financial harm to an innocent party, there could be an award for damages that exceed the required $25,000 bond amount, also known as the bond’s penal sum. The notary would be personally obligated by law to pay the entire award.
Therefore, most notaries will also purchase an errors and omissions insurance policy to protect themselves.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
An Alabama notary bond agreement is a legally binding contract between three parties:
- The Alabama Secretary of State is the “obligee” that requires the bond.
- The notary public purchasing the bond is the “principal.”
- The bonding company issuing the bond is the “surety.”
The terms of the surety bond agreement place the legal responsibility for paying claims on the principal. In practice, however, the surety normally will pay a valid claim on behalf of the principal and allow the principal to repay the debt in installments over time.
What Do They Cost?
The premium for an Alabama notary bond is a relatively small one-time fee, typically around $50 for the entire four-year term of the bond.
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Our surety bond professionals will get you the Alabama notary bond you need at a competitive rate.