What is a legal signature stamp?
A legal signature stamp (sometimes called a legal momentum stamp or legal name stamp) is a rubber stamp which can be used by an individual to endorse their signature to an official document by the use of a stamp in place of the written signature. Signature stamps are used by officials, businesspeople and individuals who may be called upon to endorse a strict number of documents on a regular basis. The repetitive nature of these tasks often makes them ideal candidates for the use of a rubber stamp in place of their written signature, which can be susceptible to variances in ink, stroke and form from day-to-day and from pen-to-pen , depending on the person using them. Affixing a stamp to a document, however, ensures the same quality, style and legibility of all signatures, thus streamlining processes which would otherwise cost heavy amounts of time and money. The Legal Signature Stamp often represents that a document has been executed correctly, in a legally obligatory or binding sense, and thereby represents a shorthand way of saying "this document is now validly signed": it can also be used to signify certain statements of fact within a document have been represented as true, correct and duly signed.
Is a stamp of someone’s signature legal?
Whether or not a signature stamp is legally valid is a question answered in one fashion: it all depends. Remember the old saying that "When you have a hammer, everything looks like a nail"? Well, if you are a company that makes stamps, every question about legal stamps is going to be answered by focusing on whether or not you can make one for someone in the jurisdiction of your store.
Signature stamps are accepted as appearing on documents in many jurisdictions with some limitations. Signature stamps, unlike electronic signatures, do not usually require an "opt in" provision be signed by the user prior to use. Electronic signatures are those that are created by a computer network that are "secure," meaning that an individual’s permission is obtained before the document bearing their signature is authenticated using a digital signature. Digital signatures are the most secure signature stamps.
For example, the legal effect of a signature stamp in Florida is that it is presumed to be forged unless there is evidence to the contrary. Florida Statute §668.003(19) and (20) state:
668.003(19) "Electronic Signature" means an electronic sound, symbol, or process attached to, or logically associated with, a record and executed or adopted by a person with the intent to sign the record.
668.003 (20) "Electronic Record" means a record created, generated, sent, communicated, received, or stored by electronic, optical, or similar means.
Similarly, New Jersey has permitted the use of signature stamps for the filing of liens in accordance with the Uniform Commercial Code. See N.J.S.A. §12A:9-140. However, the National Conference of Commissioners of Uniform State Laws has indicated that a lien claim, being a "creature of statute", must have a signature "without qualification" to authorize an agent to undertake the action. Nevertheless, New Jersey has not invalidated the use of stamps in any other Social Security or tax filings. See N.J.S.A. §40:48-1(b). A "signature is presumptive evidence of the genuineness of the signature and of the validity of the instrument which it is affixed." See N.J.S.A. §12A:3-307.
Nonetheless, in courthouse recordings, signatures must be attested by the "corporate officer" of the company retaining the signer, as stated by state code and practice. A stamp is not an attestation; therefore, it will not be used in place of a signature, nor will it be accepted in a document that does not exhibit a signature. Because signature stamps are commonly used as a form of fraud, this presumption is permitted in these jurisdictions.
Benefits of a legal signature stamp
The most apparent advantage of a legal signature stamp is the time savings it can deliver. Imagine your law practice has an engagement letter that must be signed by the attorney and several clients at different times and in different places. It’s likely that there will be some hiccup and delay along the way, which will simply eat away at your billable hours.
A legal signature stamp solves this issue, as the client can simply sign the agreement once for the stamp to be created and it can play its role instead of the client’s signature in the future. Your law practice now has a legal signature alternative that is much quicker, and which can be used in a wide range of situations.
Using a legal signature stamp is also helpful for any documents that carry liabilities for the attorney or law firm. Whenever the attorney signs a legal document, he or she can inadvertently be caught up in a contract dispute or financial claim that extends several years into the future. By allowing his or her clients to use a legal signature alternative, the attorney can mitigate the risk that the future will hold any surprises for the company.
Risks and downsides
While legal signature stamps provide many benefits, there are potential risks and drawbacks to their use. Security is one area of concern, as a stamped signature is easier to duplicate or forge than an original, written signature. This risk can be more pronounced in businesses that utilize rubber stamps with exposed ink — as opposed to self-inking stamps, where the working parts are concealed. Stamp duplication is relatively easy, even within a copier or scanning machine. Additionally, in the age of near-constant camera surveillance, a public-facing legal stamp could be used to forge a signature based only on a few frames of video.
One of the worst mistakes you can make as a notary public is to not have ink impressions made from your notarial seal. Not only are these required by many U.S. states, but they also provide you with a "backup" signature that can be replicated with accuracy. While most rubber stamps are modified to ensure the ink attaches to the card or document , it is not uncommon for the stamp to fail to imprint a legible signature. In other words, if a document is important enough to be stamped or sealed, you should ensure the impression is made legibly.
The most severe of all legal signature stamp risks is fraud. If a fraudulent activity were able to capture authenticated copies of both stamps, it becomes possible to duplicate a signature without the consent of the signatory. This can be done by simply affixing the proper stamp and impression onto any document, and then passing it off as an authentic, verified signature.
Fraud can be mitigated through a couple of practices. First, if it is necessary to provide an authenticated document to a specific counterparty, only allow the opposing party to inspect the authentication page. Next, have a strict protocol in place to protect rubber stamps, including the use of a locked, secure area or cabinet. Finally, make sure only authorized individuals have access to the legal stamps, and keep a careful and thorough log of each use.
Getting a legal signature stamp
A legal signature stamp must generally be obtained through an official vendor. As with any type of stamp, this one is made from the impression of your original signature. The vendor will require certain information and materials from you in order to ensure that the stamp is created according to legal requirements. Remember that this is a legal document, so be prepared to provide proof of your identity and that you are of sound mind and capable of entering into a contract. Failure to provide this information can lead to fines or criminal charges if needed in a court of law.
The following items will likely be required:
• Your original signature
• Your full name
• Your current address
• Acceptable identification
• Payment for the seal
When you purchase an official seal, it may be made from a standard stamp seal or a self-inking one. A self-inking one is more expensive but also saves you a lot more time, as it does not have to be pressed down to leave an impression on the page. You can change out the impression on your self-inking stamp. Just make sure that the information on it is accurate, as you will be using it regularly to sign documents.
Many legal professionals have these stamps available for $10 to $25. If you don’t want to spend that much on a stamp, you can get that reduced price by purchasing them through your law office. Many law offices offer this option to clients as an added convenience and to help them save money on the required products.
Legal signature stamp best practices
At the core of using legal signature stamps without risk is an established, controlled, and refined process that balances convenience with security. Here are some best practices to consider:
Use a Secure Storage Solution
Once acquired, a legal signature stamp should be stored in a secured environment. Is it used in a secure office where the door is kept shut? Is it secured in a locked drawer when not in use?
Be Clear on Your Policy for Use
With every employee and executive, it’s ideal to set a policy around not only who can use a stamp, but also how and when they can use a stamp. This involves having a clear documentation of how someone obtains a stamp, places a request, and tracks usage. At the same time, there should be a specific policy on what happens in case of loss or theft .
Implement Monitoring Protocols
Having someone regularly check in to make sure the stamp hasn’t been stolen or improperly used is critical. Auditing both the record of the stamp’s usage as well as speaking to staff about how and when they’ve used the stamp is vital. If you can have an automated system that can pinpoint irregularities, you have a great secondary tier of protection.
Limiting Exposure
Limiting who can use a stamp minimizes the potential for misuse. While all shipped packages might be sent out with a stamp affixed to them, the stamps are always maintained and utilized by very specific people.
In processing many different legal documents, it may seem that it’s okay to allow multiple people the access to the stamp. However, it only takes one person to lose control over the stamp and the whole organization could face unwanted legal liability. Safety in numbers is a bad plan in this case.
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