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When Parties Fail to Sign the Signature Card
by Mary Beth Guard and John Burnett
Guru Bios
Question: Can you expire a signature card due to the fact that you can’t get everyone to the bank to sign for
a new account? What if it has money in the account?
Answer: Your bank should consider contacting the account owners and agreeing upon a deadline for
them to sign your signature card. You have no basis on which to honor checks or withdrawals signed by
the persons who have not yet signed. You should inform the owners that if signatures are not provided
by the agreed date, you will have no choice but to remove the delinquent persons from the account title
and ownership, and will refuse any transactions by those persons from that date on.
If there are no persons who have signed, the account then effectively becomes unclaimed until someone cares enough to complete the signature cards,
and will escheat if enough time lapses.
The original version appeared in the September/October 2004 edition of the Oklahoma Bankers Association Compliance Informer.
First published on BankersOnline.com
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