A couple of us are having a discussion on how a POA should sign checks (whether drawing or endorsing) and also the signature card for that matter.

Example:
Name of grantor: Jane Doe
Name of POA: John Morrison

The account is in the name of Jane Doe individually. John brings the bank acceptable POA papers. We add him to the account as the POA, NOT AS A JOINT OWNER.

A $100 check is presented to the bank for deposit. It is made payable to Jane Doe. John endorses the check "Jane Doe by John Morrison as POA"...just to keep it simple maybe he also puts "for deposit only".

One of our employees says that at her former bank she was taught the check should be endorsed as follow:

Jane Doe (John has signed her name)
John Morrison (and again to keep it simple John maybe puts "for deposit only".


Same thing with drawing a check:

I think it should be: John signs the check "Jane Doe" by John Morrison POA

The employee is saying John can simply draw the check by signing "John Morrison".

Now let's talk the signature card. I always thought the POA (again if they are not being added to the account as a joint owner) they sign the signature card "Jane Doe by John Morrison as POA". Then the Bank has a sample of how John sign's the grantors name and how he signs his own name.

All additional variations on this theme are welcome!

I was always taught the endorsement/signature should be Jane Doe by John Morrison POA on checks and signature card.

Thanks Nancy. That makes the score 2-0 here in the office.

I'm no guru, but I'm with you on how the check should be signed. As for the card, wouldn't it depend upon how the account was opened? If Jane is fully capable of signing and just wanted to add John as POA, both could sign the signature card. If Jane is incapacitated and John has permission thru the POA to open an account in Jane's name, then I would agree - he should sign her name, then his as POA.

I agree on the endorsement. I think it should be "Jane Doe, by James Morris, POA."

As for drawing a check, including the principal's name in the signature seems a bit superfluous, particularly if the checks are printed with Jane Doe's name. I think a simple signature of "James Morris, POA" should be adequate.

Even though the UCC lets me say what my signature is, I agree with John that he should add "POA" or "attorney-in-fact" to his signature. In both cases, when John Doe adds "POA" to his name, he does it to limit his personal responsibilities.

On the endorsement, he is indicating the principal is picking up the endorser's obligation and offering the endorser's warranties, not him. On the drawer's signature, he is clearly saying that the principal has the drawer's obligation on the instrument, not him. If one of these checks is not paid, it is the principal, not the attorney-in-fact, who has the liability.

The attorney in fact can sign the signature card any way he wishes. He adds "POA" because he's smart, not because he has to.

I have been told that the proper way for an Attorney-in-fact (Attorney-in-Fact is a person--Power of Attorney is a piece of paper)to sign would be, John Morrison, Attorney-in-Fact. The POA gives John the right to conduct business for Jane Doe, not to sign her name. It is also acceptable to use John Morrison, Attorney-in-Fact for Jane Doe. This is the way we have been instructed to accept signatures, by legal counsel. Your state may differ.

Does a POA need to added to signature card or does POA paperwork work?

Wow - the revival of a 20-year-old thread. You do not see that every day

Depends on your new account set-up and whether the POA is deemed acceptable or not and probably the circumstances. Since the agent usually does not sign the POA, if they are going to be routinely conducting transactions on the account, you might want a signature specimen for your records.

While we do have a process to review POAs for validity that includes the agent completing an affidavit that the POA is in full force and effect, once the decision is made to accept it, our process to to have staff complete an updated Account Card and to collect identification. The agent is added to the accounts in the core as a fiduciary, and finally, all documents are uploaded into our record retention. While it seems like a lot, it keeps a continuity of process for the staff and makes the agent readily identifiable to staff.

Thank you.

Well, it is 20 plus years after this thread began, and some things have changed. Not the basics that you can read above, but the label assigned to the good and faithful servant who acts on behalf of the principal.

In many states, powers of attorney assign the label "agent" to the party that has historically been called the "attorney-in-fact." I welcome that change. It removes any aura of special status that one might infer from the word "attorney." Now if we could all get rid of the mis-use of "POA" as a label for that position, we shall have made some real progress.

It is amazing that I still see purported law firms using "power of attorney" as a label for the agent under a power of attorney.

Really? I would have thought this was a requirement in most (if not all) states.

Here in NY, it's required (and must be notarized) in order to have a valid POA because the agent is required to acknowledge his or her responsibilities under the POA.

Connecticut doesn't require it. However, I have seen a separate document signed by an agent accepting the responsibility. These are usually documents prepared by a lawyer and not a layperson though.

I'd like to read more about singing requirements and endorsements /indorsements for POAs, and even Trustees on issuing and depositing checks. For example "John Doe POA", or "John Doe TTEE". I feel like I should know more about this topic than I do.

Could anyone tell me where this guidance falls under? Are these UCC rules? I'm having a hard time finding much about where these requirements originate from and I'm being asked to point to something.

Appreciate all the help here!

If you want to be an absolute purist, I believe the endorsements should be the following format:

Jane Doe, Attorney-in-Fact for John Doe

Jane Doe, Trustee for the Doe Family Trust

At least that is the format I've seen on mortgage documents prepared and closed by an attorney in Connecticut. I can't say that I've ever seen that format used on a check.