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Colorado governor extends executive order allowing remote notarizations
On April 30, Colorado Governor Jared Polis extended a previous executive order allowing remote notarizations due to the Covid-19 crisis. The initial order, issued on March 27, waived the in-person requirement for notarizations. The extension is valid for 30 days, unless extended further by subsequent executive order.
Texas governor permits remote notarization of real estate instruments
On April 29, the governor of Texas temporarily permitted persons to appear before a notary public via videoconference when executing real estate instruments such as mortgages. The Office of the Attorney General issued a set of conditions that must be met when using remote methods of notarization. These include the use of two-way video and audio communication permitting contemporaneous interaction, verification of identity, recordkeeping requirements, and attestations of the signatory and notary that they are physically located in Texas.
Iowa adopts rulemaking for remote notarial acts
On April 29, the Iowa secretary of state adopted rules governing remote notarizations. The rules, which take effect July 1, 2020, govern training, technology, standards for communication, and proof of identity for remote notarial acts.
District of Columbia Department of Insurance, Securities and Banking issues bulletin regarding submission of filings
On April 24, the District of Columbia Department of Insurance, Securities and Banking issued a Bulletin 0X-SB-00X 03/20 suspending the procedures established by Bulletin 03-SB-04-03/21 in light of the Covid-19 public health emergency. Required filings and fee payments that would have been submitted pursuant to the procedures outlined in Bulletin 03-SB-04-03/21 must now be submitted to the department via PDF to a specified email address. Further, instead of physical checks, the associated payments must be submitted in electronic form in accordance with the instructions in the bulletin.
Massachusetts passes legislation providing for virtual notarization
On April 23, the Massachusetts legislature passed, and the governor signed, S. 2645, which authorizes virtual notarization. Specifically, S. 2645 allows a notary public to perform a notarial act utilizing electronic video conferencing in real time, and meets standards specified in the act for electronic notarizations.
CFTC charges commodity trading group with fraudulent digital token scheme
On April 16, the CFTC filed a complaint in the U.S. District Court for the Middle District of Florida against a commodity trading adviser and the companies he controlled (collectively, “defendants”) for allegedly soliciting customers and prospective customers to buy now-delisted and worthless digital tokens. The CFTC alleged that the defendants violated the Commodity Exchange Act by making untrue and materially misleading representations about their digital tokens’ function and the performance of a proprietary foreign exchange trading algorithm that the defendants claimed would deliver high rates of return. According to the CFTC, while the defendants knew that none of the customers could lawfully use the algorithm until the defendants’ risk disclosures were approved by the National Futures Association, they still sold the tokens and raised more than $1.6 million based on the premise that the algorithm was ready to be released on the open market. The CFTC claimed, however, that the disclosures were never approved, customers never gained access to the algorithm, and the tokens were eventually delisted by all the digital asset exchanges. The CFTC seeks to enjoin the defendants’ allegedly unlawful acts and practices and to compel compliance with the Commodity Exchange Act and regulations. In addition, the CFTC seeks restitution, civil money penalties, trading and registration bans, and other statutory, injunctive, or equitable relief as deemed necessary and appropriate.
Pennsylvania enacts law allowing for remote/virtual notarization
On April 20, Pennsylvania enacted legislation allowing for remote or virtual notarization for the duration of the Covid-19 emergency and for 60 days thereafter. The statute details the requirements for such notarizations, including that the notary must create and retain an audio-visual recording of the notarial act.
California Department of Real Estate updates FAQs for licensing processes
On April 15, the California Department of Real Estate updated its FAQs for licensing processes. The FAQs answer questions relating, among other things, to the closure of DRE offices, the cancellation and rescheduling of licensing exams, renewal of real estate license, and electronic signatures on licensing documents.
New Jersey passes legislation permitting remote notarization during state of emergency
On April 14, New Jersey passed legislation permitting remote notarization using communication technology for the duration of the public health emergency and state of emergency, provided certain requirements stipulated in the legislation are met.
Pennsylvania Insurance Department issues guidance for insurance companies
On April 13, the Pennsylvania Insurance Department issued Notice #2020-10 addressing obligations of domestic insurance companies during the Covid-19 pandemic. The notice details (i) extensions of 30 or 60 days for various regulatory filing deadlines; (ii) waivers of the hard copy, original signature, notarization and other in-person related filing requirements; and (iii) adjustments for remote examinations.