FI Dictating Business Signer Changes?
Answer by John Burnett, BOL Guru Guru Bio
Question: Can a financial institution dictate when a business can change signers on an account (i.e. mid-term on a CD) or is that solely at the discretion of the business?
Answer:
There is no logical reason to restrict a business's ability to change authorized signers. The deposit customer is the business, not the individual signers. If the business discharged its treasurer and hired a new one, the bank would be in the wrong to require that the former treasurer be carried as signer until the CD happens to mature.
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