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Safe Deposit Box Rented to a Business
by John Burnett, BOL Guru
Guru Bio
Question: We have a safe deposit box rented to a business and one of the signers is retiring. Our normal procedure for removing any signer on a personal box would obviously be to close the box and reopen, but in this case it is not practical for the business. We requested a written letter from the business to keep on file, but just wanted your opinion on best practices if this ever comes up again.
Answer: You should require of a corporation the same level of documentation for a safe deposit rental as you require for opening a deposit account, you should have a corporate resolution certificate indicating that a box can be rented and naming the individuals who can represent the corporation in the rental and management of the box. The resolution also often states how many of the authorized individuals have to be present each time the box is accessed. When the corporation needs to change the individuals designated to manage and/or enter the box, the corporation should provide a new resolution just as it would if it were appointing new account signers. It is not the bank's responsibility to ask the corporation if it wants to change the list when the bank hears of an impending retirement. However, it would be a good business practice to contact the corporation to indicate you had heard that Mr. X is retiring and ask them to review and bring up to date their resolutions on box management and access.
First published on BankersOnline.com 5/12/08
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