diff --git a/pkg/core/notary_test.go b/pkg/core/notary_test.go
index 0a5fdc277..e0443f239 100644
--- a/pkg/core/notary_test.go
+++ b/pkg/core/notary_test.go
@@ -95,7 +95,7 @@ func TestNotary(t *testing.T) {
 
 	bc.SetNotary(ntr1)
 	bc.RegisterPostBlock(func(bc blockchainer.Blockchainer, pool *mempool.Pool, b *block.Block) {
-		ntr1.PostPersist(bc, pool, b)
+		ntr1.PostPersist()
 	})
 
 	notaryNodes := keys.PublicKeys{acc1.PrivateKey().PublicKey(), acc2.PrivateKey().PublicKey()}
diff --git a/pkg/network/server.go b/pkg/network/server.go
index 5de319ce1..79f48a256 100644
--- a/pkg/network/server.go
+++ b/pkg/network/server.go
@@ -158,9 +158,6 @@ func newServerFromConstructors(config ServerConfig, chain blockchainer.Blockchai
 			}
 			s.notaryModule = n
 			chain.SetNotary(n)
-			chain.RegisterPostBlock(func(bc blockchainer.Blockchainer, pool *mempool.Pool, b *block.Block) {
-				s.notaryModule.PostPersist(bc, pool, b)
-			})
 		}
 	} else if chain.GetConfig().P2PNotary.Enabled {
 		return nil, errors.New("P2PSigExtensions are disabled, but Notary service is enable")
diff --git a/pkg/services/notary/notary.go b/pkg/services/notary/notary.go
index 5b4c51f3d..8c30f9ed0 100644
--- a/pkg/services/notary/notary.go
+++ b/pkg/services/notary/notary.go
@@ -44,8 +44,9 @@ type (
 
 		mp *mempool.Pool
 		// requests channel
-		reqCh  chan mempool.Event
-		stopCh chan struct{}
+		reqCh    chan mempool.Event
+		blocksCh chan *block.Block
+		stopCh   chan struct{}
 	}
 
 	// Config represents external configuration for Notary module.
@@ -109,17 +110,20 @@ func NewNotary(bc blockchainer.Blockchainer, mp *mempool.Pool, log *zap.Logger,
 		onTransaction: onTransaction,
 		mp:            mp,
 		reqCh:         make(chan mempool.Event),
+		blocksCh:      make(chan *block.Block),
 		stopCh:        make(chan struct{}),
 	}, nil
 }
 
 // Run runs Notary module and should be called in a separate goroutine.
 func (n *Notary) Run() {
+	n.Config.Chain.SubscribeForBlocks(n.blocksCh)
 	n.mp.SubscribeForTransactions(n.reqCh)
 	for {
 		select {
 		case <-n.stopCh:
 			n.mp.UnsubscribeFromTransactions(n.reqCh)
+			n.Config.Chain.UnsubscribeFromBlocks(n.blocksCh)
 			return
 		case event := <-n.reqCh:
 			if req, ok := event.Data.(*payload.P2PNotaryRequest); ok {
@@ -130,6 +134,9 @@ func (n *Notary) Run() {
 					n.OnRequestRemoval(req)
 				}
 			}
+		case <-n.blocksCh:
+			// new block was added, need to check for valid fallbacks
+			n.PostPersist()
 		}
 	}
 }
@@ -259,16 +266,18 @@ func (n *Notary) OnRequestRemoval(pld *payload.P2PNotaryRequest) {
 	}
 }
 
-// PostPersist is a callback which is called after new block is persisted.
-func (n *Notary) PostPersist(bc blockchainer.Blockchainer, pool *mempool.Pool, b *block.Block) {
+// PostPersist is a callback which is called after new block event is received.
+// PostPersist must not be called under the blockchain lock, because it uses finalization function.
+func (n *Notary) PostPersist() {
 	if n.getAccount() == nil {
 		return
 	}
 
 	n.reqMtx.Lock()
 	defer n.reqMtx.Unlock()
+	currHeight := n.Config.Chain.BlockHeight()
 	for h, r := range n.requests {
-		if !r.isSent && r.typ != Unknown && r.nSigs == r.nSigsCollected && r.minNotValidBefore > bc.BlockHeight() {
+		if !r.isSent && r.typ != Unknown && r.nSigs == r.nSigsCollected && r.minNotValidBefore > currHeight {
 			if err := n.finalize(r.main); err != nil {
 				n.Config.Log.Error("failed to finalize main transaction", zap.Error(err))
 			} else {
@@ -276,10 +285,10 @@ func (n *Notary) PostPersist(bc blockchainer.Blockchainer, pool *mempool.Pool, b
 			}
 			continue
 		}
-		if r.minNotValidBefore <= bc.BlockHeight() { // then at least one of the fallbacks can already be sent.
+		if r.minNotValidBefore <= currHeight { // then at least one of the fallbacks can already be sent.
 			newFallbacks := r.fallbacks[:0]
 			for _, fb := range r.fallbacks {
-				if nvb := fb.GetAttributes(transaction.NotValidBeforeT)[0].Value.(*transaction.NotValidBefore).Height; nvb <= bc.BlockHeight() {
+				if nvb := fb.GetAttributes(transaction.NotValidBeforeT)[0].Value.(*transaction.NotValidBefore).Height; nvb <= currHeight {
 					if err := n.finalize(fb); err != nil {
 						newFallbacks = append(newFallbacks, fb) // wait for the next block to resend them
 					}