QUESTION:My bank requires that a business customer afix his corporate seal to the deposit documentation any time he makes
changes to a business deposit account. Is a corporate seal required?
ANSWER: From a legal standpoint, it will depend on your state law whether or not a corporate seal is required to be affixed to certain documents. Some states require documents that transfer or create an interest in real estate to have a corporate seal if the entity involved is a corporation. Other states have a statute that provides corporate seals are not required in order for a document to be vaild. I suggest you check with a local attorney to determine what requirements, if any, your state has imposed. Even if there is no legal requirement, a bank may adopt a policy that any changes to a corporation's account must bear the corporate seal. The reasoning could be based on the thought that most likely only the corporate secretary or other authorized party would have access to the corporate seal. On the other hand in some states it is very easy to have a corporate seal made by an office supply company. In most instances the company does not verify that the person requesting the seal is even an officer or employee of the corporation. It may be more effective for the bank to require a certified copy of the corporation's bylaws or board minutes which authorized the change or authorized an officer to make changes to the account.
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