Answer:
There are some pretty serious issues, particularly if there are other parties with an interest in the business and the business is anything other than a sole proprietorship. Please don't confuse the issue by using "DBA" as a substitute for "sole proprietorship," because the terms have totally different meanings.
Other parties could include other members of an LLC or shareholders of a corporation, or creditors of either. If the bank has knowledge that an individual may be misusing funds that belong to an LLC, partnership, corporation or other entity, and fails to act to prevent that misuse, the bank could be pursued for losses resulting from that misuse. The bank may also have a responsibility to report the account abuse to law enforcement.
First published on BankersOnline.com 10/11/10
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