Topic: Account Opening
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Our policy is to ask for a copy of the trust instrument when opening a deposit account for a trust. Should we ask for anything else if the trust is a testamentary trust? The settlor for this trust already has died.
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No, it is not necessary to obtain any additional documentation to establish a deposit account for the trustee of a testamentary trust. Presently, whether you require an entire trust agreement before opening a deposit account for this or any other type of trust depends on your institution’s policies. There are no federal laws and presently…
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Are we required to confirm that our business customers are registered with the Secretary of State? Are there any legal ramifications if we allow a business to maintain an account after it has been voluntarily or involuntarily dissolved?
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No, we are not aware of any law or regulation requiring your bank to determine whether a business customer is in good standing with the Illinois Secretary of State or the secretary of state of any other state. It is common, however, for commercial account agreements to require a commercial customer to remain in good…
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When our customers open deposit accounts online, our vendor’s software combines the E-SIGN disclosures with the other account disclosures, instead of providing separate E-SIGN disclosures and obtaining consent before presenting the other account disclosures. Is that permissible?
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For any disclosures to which the E-Sign Act applies, we believe that you should obtain a consumer’s consent — following the E-Sign Act procedures and disclosure requirements for obtaining consent — before providing these disclosures. In general, the E-Sign Act requires that the consumer already “has affirmatively consented” to the use of electronic disclosures (and has…