Hello,

During an audit we have come across a signature card with the only signature on it being an "X". I am concerned there was no other file notation or notes on the signature card that could address the signature being witnessed by one or two bank employees; normal opening procedures would imply that was performed during the opening of the account. However, not really sure what to recommend, if anything, in this regard. The risk for forgery is also present.

BOL has posted the following in the past: Question: What is the rule (if any) for a customer wanting to sign the signature card with an X?
Answer: The rule is pretty simple -- a signature is whatever the customer and the bank agree it is. So if the bank
is willing to accept a "mark," and the customer wants to use it, there's no problem other than the increased
exposure, I think, to forgery.
First published on BankersOnline.com 9/6/04

Would anyone be will to share their operating procedures or policies on this issue if more formal procedures are being implemented other than accepting the "X" as is when the account is opened?

Thank you.

I think the new account representative printed a signature card and put an X on it where the customer was suppose to sign and the customer never signed it, if you ask me.

What Randy said could be true, that the customer never signed. In todays world it is hard to believe there are still people who are illiterate, but it does still happen. Also, there may a disability that the member may not be able to do more than make an X. You did not mention the account type, I'm assuming it is a deposit account, as you are worried about forgery. Have there been any withdrawals from the account? You could check the signature on the withdrawal form against the signature card. If there is true signature, then the customer never did sign the signature card, and you need to have it signed. If the withdrawal slips have the same mark, I hope the tellers are verifying identity.

As to procedures, we do not have any specific procedures regarding this. I would think as long as proper identification was obtained at opening, you should be covered.

Thank you both for your responses. I will certainly use those comments and ideas to complete the review.

Signing with an X is a matter of state law.

I have been searching for a cite.

This one seem appropriate

http://blog.123notary.com/?p=203

A possiblity (I have seen it but they usually fess up) or the cutomer had a stroke or blind. (I have seen all three)