FOR ALL YOUR SURETY BOND NEEDS.
View all of the Alabama Surety Bond products that we offer at Single Source Insurance. This includes those for Birmingham, Mobile, Montgomery, Huntsville, and all others. Find Dealer Bonds required by the AL department of Revenue, Mortgage Bonds, Court Bonds and more. Simply fill out an application with our Alabama bonding company online, and you'll receive a quick turnaround!
Alabama notary bonds are categorized as license and permit bonds. This is because they�re required as part of the process of obtaining a commission as an Alabama notary public. To understand why they�re required, it helps to understand the important role played by a notary public.�?
The National Notary Association describes a notary as �an official of integrity appointed by state government�typically by the secretary of state�to serve the public as an impartial witness in performing a variety of official fraud-deterrent acts related to the signing of important documents.���Those important documents include wills, deeds, loan agreements, affidavits, powers of attorney, and the like.
In purchasing an Alabama notary bond, a notary is pledging to operate in accordance with the rules set forth in Title 356, Chapter 20 of the Code of Alabama. The bond provides a source of funds for compensating anyone suffering a financial loss due to the notary�s failure to comply with the legal and ethical requirements of the position.
Because of the potential for losses exceeding the required bond amount, notaries typically purchase errors and omissions insurance for their own financial protection.
Anyone applying for a new commission as a notary public in the state of Alabama or renewing an existing commission must first purchase an Alabama notary bond in the amount of $25,000. The bond must have a duration of four years, which is how long a notary commission remains valid before it must be renewed.
The three parties to an Alabama notary bond are:
If the notary�s noncompliance with legal requirements causes someone to incur a financial loss, the injured party can file a claim against the bond and be compensated up to the bond�s full $25,000 �penal sum.� Claims most commonly result from a notary�s intentional or negligent verification of a forged, incomplete, or otherwise defective signature.
The surety typically pays valid claims on behalf of the principal, but the legal obligation to pay claims rests with the principal, not the surety. In paying a claim, the surety is extending credit to the principal, thus creating a debt that the principal must repay to the surety. This arrangement ensures prompt payment of the claimant while allowing the principal to repay the surety in manageable installments rather than coming up with a large out-of-pocket sum all at once.
Alabama notary bonds are sold for a flat fee of $50, with no underwriting. Notaries who opt to purchase errors and omissions insurance at the same time will pay a separate premium for that coverage.
Request a convenient online quote today, or call us to discuss the Alabama notary bond you will need to obtain or renew a notary public commission.
