Legal Question in Banking Law in Texas

Notary Public

Bank notary, notorizes student loan (co-signer not present), student forges co-signer signature. Student continues process with other student loans and credit card applications, progressing to over $150k of fraudulent purchases/loans, etc. Student gets caught and does federal time. Can we hold the bank and notary liable since they notorized a document without the co-signer present. This fraud (notary)enabled student to purpetuate and actually encouraged the student to continue. The notary was a distant relative. Is there any recourse?


Asked on 3/14/02, 6:01 pm

1 Answer from Attorneys
Anh Regent Regent & Associates, L.L.P.

Re: Notary Public

Possibly. If the notary notarized the document claiming the co-signer was present when he signed it when in fact he was not, that gives rise to a potential cause of action. At the least, you should be able to make demand upon the notary's bond. Depending on principles of agency, you might be able to proceed against the bank.

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Answered on 3/14/02, 8:17 pm


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