The $60 Acknowledgment Package
Priya is a Kentucky notary. She completes three acknowledgments for a borrower's refinance package. She charges $60: $15 per signature and $15 for 'document review.' The borrower asks for a receipt, and Priya writes one on a sticky note. Priya keeps a journal. She forgot to enter the first two acts, so after the appointment she writes all three entries with the same appointment time and records the fee as $5 per act because 'that is what the law allows.' She recorded the borrower's identification only as 'passport,' although the borrower used a valid U.S. passport. The borrower later learns that a friend paid $10 total for two acknowledgments and asks Priya for a refund. Analyze Priya's fees, receipt, journal entries, and exposure to discipline.
1. Did Priya's $60 fee comply with Kentucky law? Explain.
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No. Kentucky caps the fee a notary may charge for a notarial act at $5 per act. Each acknowledgment is a separate notarial act, so three acknowledgments could total $15, not $60. Priya's $15 per signature exceeds the cap, and the $15 'document review' charge appears to be compensation for the notarial transaction rather than a separate permitted service; a notary cannot evade the cap by relabeling notarial work. If Priya traveled, a reasonable travel fee might be separately permissible if disclosed, but the facts show no travel. She should refund the excess and provide an itemized receipt showing the statutory fee.
2. What is wrong with the journal entries, even if Kentucky's journal rules are not identical for every act?
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The entries must be accurate and contemporaneous. Writing all three after the fact with the same time is not a reliable record; Priya should record each act when it occurs, including date and time, type of act, signer's name and address, identification method and details, and fee charged. Recording $5 per act when she actually charged $60 is a false record. 'Passport' alone is too vague; she should record the document type, issuing jurisdiction, number if required, and expiration. If her journal is required for remote or electronic acts, the deficiency is even more serious; for paper acts, an inaccurate journal still undermines her defense and violates recordkeeping standards.
3. What disciplinary and liability risks does Priya face, and what should she do now?
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Overcharging can lead to a refund obligation and discipline by the commissioning authority, including reprimand, suspension, or revocation. Falsifying a journal entry is a separate integrity violation and could be treated as misconduct. She should correct the fee, issue a proper receipt, make a truthful note of the correction without destroying the original, and stop using a sticky-note receipt system. She should review Kentucky's fee and journal rules and retain records.