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#1407154 - 06/23/10 04:20 PM Authorization for name changes on non-profit accts
LydiaS Offline
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Joined: Jun 2005
Posts: 4
We are considering freezing debits from posting to accounts in which we have not received proper documentation giving authorization of a change in signers on non-profit or corporate accounts. In other words, we have received word to remove specific signers and replace them with new ones but have not been given minutes from meetings supporting the changes. Does anyone else have a procedure like this and if so, how well does it work? And do you think this is an issue of any significance if the appropriate authorization is not received? Thanks

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#1407226 - 06/23/10 05:44 PM Re: Authorization for name changes on non-profit accts LydiaS
SunnyFL, CRCM Offline
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Joined: Sep 2004
Posts: 205
FL
We have a checklist that we give/fax to the organization that lists the necessary information to complete a change of signers. This would include CIP information as well as a new resolution, etc. We cut off access to online banking, vru, etc for the signers being replaced but we allow inclearings. At the bottom of our checklist form we have the following language which seems to get their attention because we have not had a problem:
"IMPORTANT NOTE WHEN CHANGING SIGNERS!!
Filling out preliminary forms does not constitute a change of signers on the account. When (the Bank)is notified that a change is to take place, those individuals being removed from the account will no longer have access. However, only after the new account agreements are completed (signed by all signers) will the addition of new signers, take effect. If you do not act in a timely manner, we may have no alternative but to freeze the account."

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