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What is a “durable” authorized signer? We’re setting up a new deposit platform, and our forms provider is asking if the authorized signer is “durable.” The platform provider won’t explain the term and tells us to just answer the question. – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

What is a “durable” authorized signer? We’re setting up a new deposit platform, and our forms provider is asking if the authorized signer is “durable.” The platform provider won’t explain the term and tells us to just answer the question.

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We are not familiar with the concept of a “durable” authorized signer. We recommend answering “no” unless your platform provider clarifies the meaning of this term and how your answer will affect your deposit accounts.

The term “durable” is used in the context of power of attorney documents, but we have not seen the term “durable” used in other contexts. A durable power of attorney continues “until the death of the principal, notwithstanding any lapse of time, the principal’s disability or incapacity or appointment of a guardian for the principal.” As such, the holder of a valid durable power of attorney would be able to exercise their power even if the principal becomes disabled or incapacitated — provided this authority is granted in the power of attorney document.

It is possible that the platform provider is asking whether your bank’s authorized signer agreement is “durable” to refer to an authorized signer relationship that survives after the account owner becomes disabled or incapacitated, as with a “durable” power of attorney. But in the absence of any clarification from your platform provider, we would not recommend answering “yes” unless they agree to clarify the meaning of this question.

For resources related to our guidance, please see:

  • Illinois Power of Attorney Act, 755 ILCS 45/2-5 (“Duration of agency – amendment and revocation. Unless the agency states an earlier termination date, the agency continues until the death of the principal, notwithstanding any lapse of time, the principal’s disability or incapacity or appointment of a guardian for the principal after the agency is signed.”)