NotaryExamPrep logo NotaryExamPrep
Powers & Duties of Notary

A notary who is an officer of a corporation is asked to protest a negotiable instrument owned by that corporation. The notary is also individually a party to that instrument. What is the best answer?

A

The protest is permitted because corporate affiliation always cures any personal-interest issue.

B

The protest is barred because Executive Law §138 does not allow the notary to protest a corporate instrument when the notary is individually a party to it or has a financial interest in it.

C

The protest is valid only if done on Sunday.

D

The protest is valid only if the instrument is first acknowledged.

Official source: Notary Public License Law (March 2026)

Reference: Powers & Duties of Notary

Source checked September 7, 2026

✓

Correct Answer

B. The protest is barred because Executive Law §138 does not allow the notary to protest a corporate instrument when the notary is individually a party to it or has a financial interest in it.

Detailed Explanation

Section 138 contains both a permission and a limit. A qualified notary affiliated with the corporation may protest negotiable instruments owned or held for collection by the corporation, but not if the notary is individually a party to the instrument or has a financial interest in the subject. Importantly, the exam often tests the exception and the limitation in the same fact pattern.

Powers & Duties of Notary Question #419
🔒

See the Correct Answer & Detailed Explanation

Try 10 free preview questions with instant feedback, official source references, and detailed explanations. Full access includes all 500 New York questions.

Start the 10-Question Free Preview

No credit card required · Interactive quiz simulator