We are implementing a new credit card program for commercial clients.
On the application we provide a place for the authorizied signors of the company to identify who should receive the credit cards. Example: Jody is an authorized signor for The Greek Restrauant account. Susie is not an authorized signor for the account but Jody provides the approval for the bank to give Susie a credit card.
My thought (question) is how far does the bank need to go to verify Susie (signature, ID, etc) or does the bank even need to verify Susie since the bank verified The Greek Restrauant for CIP and the bank verified that Jody is permitted to sign on behalf of The Greek Restrauant by corporate resolution. Would The Greek Restrauant be picking up the liability for Susie?
Thanks for your thoughts.