Corporate Account: Multiple Signers with No Signature Cards
by Mary Beth Guard, BOL Guru
Question: We have a convenience store chain account that has several individual store accounts. They want to open an account that is just used to pay their beer suppliers, for each store. They want us to come up with a letter of some sort that will allow any employee to sign the checks. They don't want to do a regular signature card, because they say it changes too frequently. What are your thoughts about this?
Answer: Perhaps the most expedient way for them to do this is via a power of attorney. They could, for example, issue a limited POA designating a particular individual to sign the checks and they would provide a copy to you. When the person is no longer with them, or they don't want the person to sign any longer, they would tender a revocation of Power of Attorney to you.
A "letter" would not suffice to protect the bank. Either they designate signatories via signature card or via a properly executed Power of Attorney.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
