Update Banks Signature Cards

Started by HanhN1 • 7 replies • 2575 views

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HanhN1
Posts: 63

Posted:

I need your advice. My Association Board Members and Property Management have not updated bank signatures Cards. A new board members was selected last year. He kept asking and reminding, but his requests have been denied and refused. I know that by laws they must update the bank cards.

RogerB
Posts: 4,986

Posted:

Hanh, not all Board members need to be signers on accounts. It is a good idea to update bank signature cards every time a signer needs to be deleted and/or added.

HanhN1
Posts: 63

Posted:

Thanks Roger for the advice. You are right, but the previous board members must be deleted and add new boad members on the accounts. Is this fair and legal?

DonnaS
Posts: 5,596

Posted:

HanhN,
This is not a question of being legal or fair and what has fair got to do with this? It is what your bank and your documents must require. Gosh, think of it, if former Officers still have their names on the bank account and you don't delete them and you add the new names, you might end up with 12 names on the account. Who signs the checks then? WOW!! What a nightmare for the bank and any person who is trying to pay your bills. Sometimes new Boards just don't get the concept of being in charge now and let some of these things just slide until they hit a brick wall. Example--insurnace policy for a new Board, Before the ink is dry on the list of new officers, that should be done. The same with all of the financials, it should be done immediately.

MD
Posts: 24

Posted:

We had the same problem in our HOA. The TREASURER did not have a completed signature card on file. The property management company kept "forgetting." Any association stupid enough to not take care of business basics is asking for problems. A good property manager ensures the board of directors has the tools needed to do business. It's issues like this that make me question the wisdom of lay people running a corporation. In California, there have been law changes addressing accountability and such but it's a very small thing compared to what's happening every day in HOAs.

DaneC
Posts: 202

Posted:

You may have a 5 member board, but only 3 may be the signatories designated for signing official documents, e.g. signature cards. That being said, the BOARD should update the signatures when changes occur (elections, new appointments to replace resignations, etc) and forward to the bank, with a letter advising that this/these new card(s) replaces all prior cards, and also requesting acknowledgement of receipt of the new signature card(s).

The BOARD should mail this letter to the bank, and NOT pass it back to the management company - I have seen too many occasions over the years, where other signatures were added, checks signed, and then the board wanted to know who authorized payment of the checks, only to be faced with a copy of a card with signatures that they did not authorize.

HanhN1
Posts: 63

Posted:

Thanks so much Dane for your clear help. The problem I got is the entire board and property management company did NOT want to update.

PaulM
Posts: 1,325

Posted:

HahnN1: The purpose of a signature card with a bank is so the bank can confirm the written signature or signee's name shown on a check. Therefore, whoever holds the authority to sign checks (sometimes it's the Treasurer or it may be the Financial officer or another Board member) is the person who needs to be on the bank's signature card.

Yes, as check signing authority changes, so should the bank signature card to stay current.

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