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#1410157 - 06/30/10 06:16 PM Authorized Signer adds name to Check Order
Runnin' on Empty Offline
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May an Authorized Signer order checks and add his name to the Owner's Name that appears on the checks? We will verify the request with the Owner before acting on this but I need help knowing what the bank's responsibilities are with this request. Nothing in the Deposit Agreement addresses this.

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#1410448 - 06/30/10 10:17 PM Re: Authorized Signer adds name to Check Order Runnin' on Empty
Runnin' on Empty Offline
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Would this need to be a business decision made at our bank? Anybody????

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#1410457 - 06/30/10 10:55 PM Re: Authorized Signer adds name to Check Order Runnin' on Empty
Kathleen O. Blanchard Offline

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This would be a decision for your bank, based upon your account agreement and, if a business account, any resolution from the business.

I think you are doing the right thing to protect the bank by verifying such a major change with the account owner.

You might want to consider amending your deposit agreements to cover such situations after reviewing all of the facts.
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#1410525 - 07/01/10 01:31 PM Re: Authorized Signer adds name to Check Order Kathleen O. Blanchard
dickr Offline
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I'd be very reluctant to add the name without some designation of status, as would be done with a POA or Executor, even with the consent of the account owner. Otherwise, especially on a personal account, it could imply joint ownership. Unfortunately, there are any number of check printing outfits that will print checks with whatever the order form says.
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#1410593 - 07/01/10 02:45 PM Re: Authorized Signer adds name to Check Order dickr
Kathleen O. Blanchard Offline

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At least when an individual orders checks from outside the bank the bank cannot be construed as agreeing with the transaction.
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#1410623 - 07/01/10 03:24 PM Re: Authorized Signer adds name to Check Order Runnin' on Empty
Elwood P. Dowd Offline
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Next to Harvey
It's a policy issue. I would not allow it. As noted, if they buy their checks on the Internet or from an ad in the Sunday paper, there is little or nothing you can do about it. However, if they buy them from your bank you may be complicit if someone reasonably believes the "agent" actually owns the account.

Again, a matter of opinion and policy, but I would allow an attorney-in-fact's name to be put on a check if the fiduciary capacity was indicated next to the name. I hold my Mom's POA and have signed checks carrying only her name for years without being questioned. However, one retail store told me "Your ID is no good unless your name is on the check." Since Mom needed the TV I did not want to begin a debate, but simply pointed to the language above the signature line: my name, attorney-in-fact. They thought that was peachy.
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#1410647 - 07/01/10 03:47 PM Re: Authorized Signer adds name to Check Order Elwood P. Dowd
dickr Offline
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Middlesex Cty NJ
Would you advise a SAR (and closeout)if you find that checks are being negotiated with other than the legal owner's name printed on the checks?
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#1411136 - 07/02/10 12:29 PM Re: Authorized Signer adds name to Check Order dickr
Elwood P. Dowd Offline
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No, not based on that fact alone.
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#1411328 - 07/02/10 02:42 PM Re: Authorized Signer adds name to Check Order Kathleen O. Blanchard
HappyGilmore Offline
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Pulling people out of the ditc...
Originally Posted By: MS Kaybee
At least when an individual orders checks from outside the bank the bank cannot be construed as agreeing with the transaction.


unless the bank accepts these and pays them in the normal course of business, which it would do as no one looks at checks anymore unless it hits a large dollar threshold
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#1413194 - 07/09/10 01:57 AM Re: Authorized Signer adds name to Check Order Runnin' on Empty
JavaBanker Offline
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I would agree with those who felt this would not be a good practice without the proper authorization/documentation from the account owner(s). If this request was made at our institution by an authorized signor, we would not act upon that request and inform the signor that this would need to be requested by the owner.

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#1413196 - 07/09/10 02:17 AM Re: Authorized Signer adds name to Check Order HappyGilmore
Kathleen O. Blanchard Offline

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Originally Posted By: Happy Gilmore
Originally Posted By: MS Kaybee
At least when an individual orders checks from outside the bank the bank cannot be construed as agreeing with the transaction.


unless the bank accepts these and pays them in the normal course of business, which it would do as no one looks at checks anymore unless it hits a large dollar threshold


Except that paying the checks is less direct than actually processing the order for the checks. It would all be argued in court, of course!
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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