We have a divorce situation regarding a business account. Is it possible to freeze or place a hold on an account for a few days until we receive some pieces of information from the customer. I feel like a Reg CC hold notice is not appropriate. And I have never frozen an account before.

Any help is appreciated.

Why to you think you have the right to freeze an account?? If it is a business account, the domestic relationship of the shareholders is really neither here nor there.

Absolutely not. Read the loan documents. I doubt it says if we hear the individual is getting divorced we can freeze the line. It does make sense to keep your eyes and ears open because it can be an early indicator of future problems, but beyond that, no.

This shrieks lender liability.

KB - I think they are referring to a deposit account as they referenced Reg. CC.

Even more strange!

I was referring to a deposit account. The issue is because the husband is stating the wife doesn't have rights to the account because she was just an authorized signer. Apparently there was another business resolution after the account was opened, which we were not notified of. We want to somehow place a hold on the funds in the account until the husband brings in a copy of the new resolution.

Can we freeze the funds in a case like this?

Authorized signers do have transactional rights to the account and any other rights accorded by the business resolution in force at the time.

I would do nothing until the copy of the new resolution appears. And then I would scrutinize it or send it to my legal counsel to make sure it's valid (e.g., did the prior business resolution require multiple signatures?).

Apparently there was another business resolution after the account was opened, which we were not notified of.

Sounds like thier problem to me. I would just cut a check made payable to the business and let them sort it out and not put the bank in the middle.

Thank you all for the input.