Signers can notarize from anywhere in the world, including California, since the notaries follow Virginia law. It's like how lenders and credit companies often use Utah law (but can lend elsewhere) or corporations incorporate in Delaware.
There was a bill a few years ago in Congress that tried to make it so that states would have to honor out of state notarizations, but this bill was vetoed. Until such a bill is signed into law, or either the 9th Circuit or the Supreme Court rules that states must accept out of state notarizations that do not meet the in-state notary requirements, then any notarization in which you are not present is questionable in California.
This is not at all similar to how lenders can use Utah law but incorporate in Delaware. Choice of legal forum is a contractual issue between private parties.
Notorization is a legal issue involving the government. Notaries act as government agents when they notarize, so each legal jurisdiction gets to set the standards for legal notarization within their jurisdiction. States are not required to honor notarizations performed in another state under the Full Faith and Credit Clause because notarization is not considered a "public act" but most states will accept notarizations from other states if the standards in the other state are the same or stricter than the first state.
Hence, while signers can notarize from anywhere in the world using SignNow, they can't use this notarization for anything except for transactions governed by Virginia law and subject to the jurisdiction of Virginia courts. This makes the service effectively useless for anyone who does not live in Virginia, since other state courts do not have to accept the notarization.
http://www.ftc.gov/os/comments/factaidt/FBI%20Evid%20Memo1.p...
I couldn’t find any federal or other court decisions that state that a notarial act is not considered a “public act” under the Full Faith and Credit clause. Can you provide a citation?
Here’s testimony before a House of Representatives committee which states that out-of-state notarizations are often rejected, but usually for formalistic and not substantive reasons:
http://commdocs.house.gov/committees/judiciary/hju26412.000/...
States still can and do reject out-of-state notarizations if it fails to satisfy procedural requirements for notarization in that state. Notarization is a formal process--it has very little actual substance--so this effectively swallows up the impact of the Full Faith and Credit Clause.
Key Quotes Regarding electronic notarization: “New state and federal laws, such as the 2000 Electronic Signatures in Global and National Commerce Act (E-SIGN), authorize every state-commissioned notary in the nation to use electronic signatures in performing official acts.”
Regarding Out Of State Acceptance “State laws...already recognize the validity of out-of-state notarizations, the state and federal evidence rules that recognize notarial acts as self-authenticating, and the Full Faith and Credit Clause of the U.S. Constitution.”
States would have to pass legislation against online notarization to prevent its acceptance.
Several states have put out warnings, including the state of California. This notice was published prior to the legal change and has apparently not been reviewed by state counsel. We have received clarification, consistent with all communication from other states, that they are only concerned with online notarization conducted by their notaries.
> Key Quotes Regarding electronic notarization: “New state and federal laws, such as the 2000 Electronic Signatures in Global and National Commerce Act (E-SIGN), authorize every state-commissioned notary in the nation to use electronic signatures in performing official acts.”
You are misunderstanding the issue California and other states have with electronic notarization. As the document you cite notes, but you appear to have overlooked:
As previously mentioned, all states require that an individual seeking
to have a document electronically notarized appear in person before the
notary at the time of notarization. Colorado’s law specifically emphasizes
that electronic notarization is not remote notarization–the signer must
appear in the presence of the notary and swear, affirm, or acknowledge
the electronic document being notarized.
The laws that have made electronic signatures valid in many contexts, including notarization, just deal with using electronic signatures to replace paper signatures and other physical records. For instance, again from the document you cited: Therefore, UETA permits a notary public and other authorized officers
to act electronically, effectively removing the stamp/seal requirements.
However, it does not eliminate any of the other requirements of notarial
laws. The process of notarization remains the same under UETA. Only the
technology used to make a signature is different.
More: Under the NASS electronic notarization standards, RULONA, and the most
recent version of the Model Notary Act, an electronic notarization must
meet the same basic standards as a paper-based notarization. The traditional
components remain present, including the notary certificate, the notary
signature and the notary seal information. In most states, the signer must
still appear before the notary public face to face in the same room.
Requiring personal appearance allows a notary to interact with and affirm
the identity of the signer, ensuring that he or she is authorized to sign
and is not doing so under duress.Despite the NASS stance on out-of-state notarization, the states themselves, and the courts, actually get to decide whether an out-of-state notarization can be used in the jurisdiction. Many routinely reject out-of-state notarizations which fail to satisfy the standards for notarizations within that state. (Federal courts are different--they will accept notarizations if the notarization would be valid under the laws of the forum state.)