This review list is intended to educate you about this document and to guide you in its preparation. Almost every bank or financial institution requires this Banking Resolution when creating corporate financial and checking accounts. Attempting to open a banking account prior to completing this step will speed the procedure and appropriately formalize the activity.
- Make several copies. Distribute one to the bank or financial institution in question; include one in your company minutes; and include another in the bank or financial institution’s file.
Banking Resolution Of Corporation
Banking Resolution of Corporation
I, ________________, _________ of ________________, referred to as corporation, certifies that the following is a true copy of resolutions adopted by the Board of Directors of this corporation at a meeting held on proper notice, a quorum being present, on _________________, and that such resolutions are now in full force and effect.
Resolved that the _____________________________________ of ____________, ____________ is designated a depository of this corporation; and
Further resolved, that all drafts, checks, and other instruments or orders for the payment of money drawn against the account or accounts of this corporation with such depository shall be signed by any ____ of the following:
_____________________________________________________________
Further resolved, that such depository is authorized to place to the credit of the account, or any of the accounts of this corporation, funds, drafts, checks, bills of exchange, or other property whomever delivered to such depository for deposit for account of this corporation, endorsed with the name of this corporation by rubber stamp, facsimile, mechanical, manual or other signature (and any such endorsement by whomever affixed shall be the endorsement of this corporation), or otherwise endorsed, or unendorsed, provided that if any such draft, check or other property shall bear, or be accompanied by, directions (by whomever made) for deposit to a specific account then such deposit shall be to the credit of such specific account; and
Further resolved, that such depository is directed to accept, and/or pay and/or apply any draft, check, instrument or order for the payment of money, or any proceeds thereof, drawn on such account or accounts when signed as required by these resolutions without limits as to amount, without inquiry, and without regard to the disposition of any such item or proceeds thereof, and such depository shall not be liable in connect therewith notwithstanding that such item may be payable to the order of a person whose signature appears thereon or of any other officer or officers, agent or agents of this corporation, or such item or any proceeds thereof may be used for the personal credit or account of any such person or person with the depository or used in payment of the individual obligation of any such person or persons to the depository or otherwise.
Further resolved, that such depository is authorized to deduct from the accounts of the corporation the regular promulgated service charges and fees for accounts and other services rendered to the corporation.
Dated: _________________________________
________________________________________
Corporation
____________________________, by its ______ (Office of Signer)
Print Name:
Banking Resolution of Corporation
Review ListThis review list is provided to inform you about this document in question and assist you in its preparation. This Banking Resolution is required by virtually every bank or financial institution for opening up corporate financial and checking accounts. Doing this in advance of trying to open a banking account will expedite the process and properly formalize the activity.
1. Make multiple copies. Give one to your bank or financial institution in question; put one with your corporate minutes; put another in the file for the bank or financial institution.
Frequently Asked Questions
What is a banking resolution for a corporation?
A banking resolution for a corporation is a formal document that certifies the adoption of resolutions by the corporation's Board of Directors regarding its banking arrangements. It designates a depository and specifies who is authorized to sign financial instruments on behalf of the corporation. This document is often required by banks to open or maintain corporate accounts.
Who needs to sign a corporate banking resolution?
The corporate banking resolution is typically signed by a corporate officer, such as the secretary or an assistant secretary, who certifies that the resolutions were adopted by the Board of Directors. The document includes a blank for the officer's title and name. The specific signer is determined by the corporation's bylaws or board instructions.
What information is included in a banking resolution?
A banking resolution includes the date of the board meeting, a statement that proper notice was given and a quorum was present, and the specific resolutions adopted. It designates a depository and lists the authorized signers for checks and other instruments. It also authorizes the depository to accept deposits and endorse items on behalf of the corporation.
Why does a bank require a corporate resolution?
A bank requires a corporate resolution to verify that the individuals conducting transactions on behalf of the corporation have the proper authority. It protects the bank by ensuring that it is dealing with authorized representatives. This helps prevent unauthorized withdrawals or account activities.
How many signatures are required on corporate checks according to the resolution?
The resolution specifies that checks and other payment instruments must be signed by any number of authorized individuals, as indicated in the blank provided. The exact number is determined by the corporation and filled in on the form. The resolution lists the names of those authorized signers.
Can a corporate banking resolution be amended?
Yes, a corporate banking resolution can be amended by the Board of Directors adopting new resolutions. The amended resolution would supersede the previous one and would need to be certified and provided to the bank. The process typically involves a new board meeting and proper documentation.
What is the purpose of designating a depository in a banking resolution?
Designating a depository in a banking resolution identifies the specific bank or financial institution where the corporation will maintain its accounts. This authorizes the bank to act as the corporation's depository for funds and other items. It ensures that the bank is officially recognized by the corporation's board.
Does a banking resolution need to be notarized?
The article does not specify whether a banking resolution must be notarized. Notarization requirements can vary by bank and jurisdiction. It is advisable to check with the bank to determine if notarization is necessary.
What types of transactions does a banking resolution cover?
A banking resolution covers transactions such as drafts, checks, and other instruments or orders for the payment of money drawn against the corporation's accounts. It also authorizes the depository to accept funds, drafts, checks, bills of exchange, or other property for deposit. The resolution allows for endorsement of items on behalf of the corporation.
How often should a corporate banking resolution be updated?
A corporate banking resolution should be updated whenever there are changes to the authorized signers, the designated depository, or other banking arrangements. It is also good practice to review and update it periodically, such as annually or when new board members are elected. The specific frequency depends on the corporation's needs and bank requirements.
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