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Powers & Duties of Notary

A notary employed by a corporation is asked to protest a corporate note held for collection by that corporation. The notary is not individually a party to the instrument and has no financial interest in it. What is the best answer?

A

The protest is improper because any corporate employee is automatically disqualified.

B

The protest is proper because Executive Law §138 permits this unless the notary is individually a party or financially interested.

C

The protest is proper only if the notary is also an attorney.

D

The protest is improper unless a county clerk first authenticates the notary’s signature.

Correct Answer

B. The protest is proper because Executive Law §138 permits this unless the notary is individually a party or financially interested.

AI Explanation

Corporate employment alone does not disqualify the notary. Executive Law §138 allows a stockholder, director, officer, or employee of a corporation to protest negotiable instruments owned or held for collection by that corporation unless the notary is individually a party or has a financial interest in the subject. In practice, the disqualifying factor is personal involvement or interest, not mere employment status.

Powers & Duties of Notary Question #462
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