e Notarization The Premise, The Promise, The Reality, The Future A presentation at the

1. eNotarization The Premise, The Promise, The Reality, The Future A presentation at the 2012 Annual Conference of the Electronic Signature and Records Association November 2012

2. The Premise A notary is a notary is a notary,no matter what pen isused to notarize.

3. Promise – Uniform State Law SECTION 11 --- If a law requires a signature or record to be notarized, acknowledged, verified, or made under oath, the requirement is satisfied if the electronic signature of the person authorized to perform those acts, together with all other information required to be included by other appli-cable law, is attached to or logically associated with the signature or record. ULC Comment “This section permits a notary … to act electronically … [T]his Act … simply allows the signing and information to be accomplished in an electronic medium.” Uniform Electronic Transactions Act (UETA)

4. Promise – Federal Law NOTARIZATION AND ACKNOWLEDGMENT If a statute, regulation, or other rule of law requires a signature or record relating to a transaction…to be notarized, that requirement is satisfied if the electronic signature of the person authorized to perform those acts…is attached to or logically associated with the signature or record. Electronic Signatures in Global and National Commerce Act (ESIGN)

5. Promise More Uniform Laws… • Uniform Real Property Electronic Recording Act (URPERA) • Revised Uniform Law on Notarial Acts (RULONA) Industry Papers • National Association of Secretaries of State (NASS) • American Bar Association (ABA) • Organization for the Advancement of Structured Information Standards (OASIS)

6. Promise Official and Unofficial Position Statements • Secretaries of State • Notary public administrators • Attorneys general • Other state government agencies Proprietary Solutions • Private companies with in-house solutions • Vendors

7. Reality - State States that permit eNotarization today • CA, CO, FL, KS, MN, NC, NM, PA, TX, UT, VA States that have mandatory enrollment programs • CO, MN, NC, NM, PA, VA State initiatives that are just a little different • DE, VA States that say NIMBY (Not in my back yard!) States that have not even considered the possibility

8. Reality - State It is difficult, if not impossible, to find someone in state government: • Who has heard of UETA, ESIGN, URPERA, or RULONA. • Who agrees that “Electronic notaries are nothing special, just a notary using a tool other than a pen for signatures.” • Who agrees that UETA already provides the states with the authority necessary to empower notaries to act as electronically enabled notaries. • Who does not think that the NASS standards must be followed for effective, secure eNotarization to take place. • Who does not think that their state needs additional enabling legislation and regulation to effect eNotarization in their state.

9. Reality - Technology The typical notary appointing authority either does not understand the technology or does not believe their current systems will accommodate the technology. 80% of notaries are employed by someone who will pick the eNotary technology for them. • PKI (Pretty Konfusing Infrastructure?) • Digital certificates • XML

10. Reality - Technology Do you understand how an ATM works? Do you care how it works as long as you get your money? Why does eNotarization need to be more difficultthan getting money from an ATM?

11. Reality - Education Why do we call this concept “eNotarization” or “electronic notarization?” Why does it need a special moniker? eNotarization is no more than a standard arm’s-length notarization executed using an electronic process instead of a pen to create a signature. The notary’s surety bond and E&O insurance underwriters have taken the stance that there is no need for an amended or additional coverage for electronically completed notarial acts.

12. Future De facto industry standard • A solution is so widely adopted, business and government must recognize it as the generally accepted practice. Legal precedent • A challenge is decided in court, establishing a legal standard from case law. An agreement with the state appointing authorities • A little push, a little pull, a little give-and-take, so both sides are comfortable at the end of the day.

13. Future Perhaps we need a different conversation? • The current ideas are not working! • No more notary experts, lawyers, technologists, government officials and consultants • A conversation on the psychology of change and how to effect change in the marketplace • A conversation on the “diffusion of innovation” or “inflection points”

14. Future A public or private entity drives the adoption of a solution across industries and markets. Will ESRA be that champion?

15. The Premise A notary is a notary is a notary,no matter what pen isused to notarize.

16. Thank you! Marc L. Aronson President and CEO Pennsylvania Association of Notaries One Gateway Center, Suite 401 420 Fort Duquesne Boulevard Pittsburgh, PA 15222-1498 800-944-8790 www.notary.org maronson@notary.org