Originally Posted by
Chex
Pete: I have an account officer asking why can't we just cross out the name of the individual that will no longer be on the account instead of re-doing the account signature card? If we have to re-do the signature card where in the regulation that states this is what is required?
Tilly: We require individual accounts and business accounts that remove a signer from an account to re-sign a "revised" account signature card with the current signers and a revised date. Can anyone help me with "we are only going to do this if it is a regulation" statement???
Pete: There is no regulation, but you might want to suggest that he get the OK from your attorney first. I can guarantee that your attorney will have either a "deer in the headlights" or a "you gotta be kidding me, right" look on his face once he presents his question - take your choice. How does someone - anyone - cross a name off a contract act to nullify a contract that has already been executed?
Tilly: Thanks that was what I was thinking - more of a contract situation instead of a regulation.
Burt: We have a procedure and policy for this type of situation; and we require new signature cards for any changes. Crossing names out or changing information on the initial or original signature card can appear to be an alteration, whereas a new signature card acts as an official amendment or update to the account titling.
Pete: Too many court cases involving account ownership have embarrassed bankers by revealing shortcuts like crossing out or adding names to old signatures cards. Not only does it appear sloppy; it also doesn't provide a court with any assurance that the bank is careful about contracts.
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