A notary public is prohibited from performing any notarial act in which they have a direct financial or beneficial interest in the transaction (Government Code §8224). This means a notary may not notarize a document in which they are named as a party, a beneficiary, a trustee (in their individual capacity), or otherwise stand to gain financially.
Important exceptions — these do NOT constitute a prohibited interest:
• Acting as an agent or employee for a party with a financial interest (e.g., notarizing for your employer who is the beneficiary)
• Receiving a notary fee for the act itself
• Acting in a professional capacity as an escrow holder or lender representative
Exam Tip: A notary employed by a bank may notarize a loan document even though the bank benefits — because the notary personally has no direct interest. But if the notary is personally named as a beneficiary on a deed of trust, they must refuse.
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