Lecture Notes: Notary Protest and Discharge of Debt

Introduction

Notary Protest:
- A formal declaration made by a notary public that a negotiable instrument (e.g., check or draft) has been dishonored.
- Critical in the process of discharging debt.
Discharging Debt with Notary Protest:
- Request a payoff statement or certified record of debt.
- Tender an instrument (banker's acceptance, draft) with a medallion stamp if possible.
- Use a notary protest to certify dishonor if the instrument is not accepted.
- 1099 Reporting:
  - 1099-C for cancellation of debt.
  - 1099-INT for reporting cash items.

Preparation:
- Research and understand state-specific requisites for notary protest.
- Prepare documents and cover letters thoroughly.
Cover Letter:
- Not mandatory but recommended.
- Should state the notary’s role as a witness and provide statutory authority.
- Avoid involving the notary directly in the transaction.
Certificate of Protest:
- Must include:
  - Identification of the instrument and its dishonor.
  - Evidence of non-acceptance or non-payment.
  - Notary's attestation and a seal.
- Consider including an accounting section for validation.

Self-Authenticating Evidence:
- Documents like the notary's certificate of protest fall under self-authenticating evidence.
UCC 3-505:
- Provides guidelines for evidence of dishonor.
- A protest can be made upon information satisfactory to the notary.
State Compliance:
- Ensure compliance with specific state laws regarding notary protests.
- Research relevant commercial codes.

THCTrust.org:
- Membership plans available for templates and resources.
- Coaching sessions offered for personalized guidance.
Group Resources:
- Access to private research groups for members.

Ensure thorough research and compliance with state and federal laws when conducting notary protests.
Membership and coaching provide valuable tools and insights.
Importance of creating a valid and enforceable notary protest to support debt discharge efforts.