Business Resolutions

Our Financial Instutation is struggling with businesses who want to change signers on their business accounts every few weeks. Everytime we do this we require a new resolution for that specific account as well as a new signature card.

Is it recommended that we only do one resolution at the time of account opening and only list out the powers of those listed on the business documents on one resolution or on each account specific resoltuion? Or should we be getting a new resolution every single time for every single account the business has with us?

JH

You have to get a new resolution, otherwise how to you know who is authorized by the business to conduct business on its behalf. If it a real problem - charge them for it.

We have numerous clubs, groups, organizations as well as business accounts. About the only way to keep it all straight and know who has authority to do what on what account is to get a new resolution and signature card whenever changes are made and to have a resolution for each account (if the business/club has several accounts). The other thing you want to think about is if certain signers are only granted certain authorities, make sure you have the ability to track who can do what.

Our commercial resolutions document the title/position of the signatories, e.g., president, treasurer, manager, clerk, etc as determined by the customer. The specific names/signatures, etc of these individuals are captured on the signature card. Unless a new signer doesn't fall into the one of the categories recorded on the resolution, we don't usually require a new one when signatories change, just a new sig card.

I wanted to see if anyone else has considered going to a "master resolution" and "master electronic fund transfers" for businesses or individuals that have multiple accounts.

We are considering going to this format because our forms are completed the same as Cape Codder. It seems there is a lot of duplication of efforts in completing the forms that are then imaged into a file by name, not account number.

Curious if anyone else is looking into this.

Input Please: How is your bank obtaining resolutions for the various entity types: do you require the customer to provide one to the bank OR do you use the resolution for the particular entity type that comes from your bank's account setup program where the customer fills in the blanks?

We're currently having an internal discussion on this exact topic.

We use a master template with sections completed as appropriate for the business type (i.e. corporation vs unincorporated association).

We have three resolutions that are included in the package from our forms vendor. One for Organizations and Associations (i.e. non-profit clubs and other similar groups), one for Sole Proprietors, and one for Corporations(for-profit & not-for-profit), Partnerships, and LLCs. They work very well for any type of business or entity.

To SunnyFL, CRCM
We also use the 3 different resolutions from our vendor, do you require one per account? Example: a non-profit has 6 different checking accounts with the same signers, do you get 6 different forms or do you use a master document?

Thanks for responding Cape, Sunny, and blue!

We, too, use the resolutions that are included in package from our vendor. We get a resolution completed for each account, regardless if same signers.

Does anyone ask for the Corporation customer to provide their own resolution?

It would totally depend on what the resolution allows the representatives of the organization to do. If it allows them to open accounts for the organization as they see fit, then you only need one.

We do require one per account. We have numerous (and I mean numerous) clubs, groups, and organizations that have a number of accounts each and many times have different signers on each account. They also change signers like they change socks; on some but not all accounts. Much easier for us to keep track of who can do what on which account.

Like I said, it will all depend on the wording on the resolutions and what authorities are given to the authorized signers.