Our bank allows certain negative reporting on ChexSystems to be waived by Senior Management when accounts are being opened. Of course this is on a case by case basis. Should we allow waiving a negative report on ChexSystems if it is an executor on an Estate Account? My personal opinion would be "No".

I think for me it would depend on who was doing the reporting and what the activity was.

My intial response would be "No" as well. That report indicates that the person has had issues handling an account in the past. As an executor, they are handling the estate's funds rather than their own. This means that the beneficiaries of that estate have an interest in how those funds are handled.

If the executor mishandles the funds in a way that results in NSF or other charges, then those same beneficiaries may point to that Chexsystems report as an indication that the Bank was aware of the person's problems handling an account.

They may or may not have a case, but I wouldn't want to spend the money and time defending from litigation that the bank should've taken more care with the account given that information prior to opening the account.