Using Corporate Resolutions

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Question:

How should banks be using corporate resolutions with business deposit accounts? - Should we be documenting who has what authority to do what as stated in the resolution? - How do banks use them after the relationship has been established? Not all businesses have a corporate resolution created by an attorney, so what should the bank's true role be with these?

Answer:

If you do not have a resolution or other direction from the entity telling you who has authority to take specific actions on behalf of the entity, then you are taking the risk that person's actions on behalf of the entity are not authorized.

This is really a discussion that you need to be having with your legal counsel.