IBA Compliance Connection

Your go to source for compliance!

If a corporate resolution states that only one signature is required to open a deposit account or a CD on behalf of the corporation — regardless of the number of authorized signers listed in the resolution — does that mean any one of the authorized signers can come into the bank and sign the CD agreement on behalf of the corporation?

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Yes, we believe that if customer with multiple authorized signers has a corporate resolution authorizing any of the authorized signers to open a certificate of deposit (CD) account, any one of the authorized signers may sign a CD account agreement on behalf of the customer — provided that this would not be inconsistent with the terms of your account agreement and any other agreement you may have defining the scope of the authorized signers’ authority.