What Is the Authorized Signer on a Checking Account?

You can make your close relative or friend the authorized signer of your checking account. This acts as a way of giving them access to your asset without necessarily changing of ownership. In case of unforeseen cases such as disability and illness, older people prefer entrusting their close relatives as authorized signers of their finances.

Authorized signer, even if they are not the owner of the account, they are allowed to check the account information.

Definition of Authorized Signer

Usually, authorized signers can sign checks, deposit and withdraw funds without the permission of the owner. But all the transactions made must be for the user and not for the personal use of the signer. However, the authorized signers are not beneficiaries and cannot be the owner of the property incase of demise of the owner.



Obligations of Authorized Signer

Even though authorized signer is not responsible for paying fees that result from overdrafts, they are not supposed to sign for checks when they have prior knowledge that funds are unavailable. But there can be exceptions where the signer agrees to be liable.

An account owner can file a lawsuit in cases where the funds are used for other purposes rather than what is stipulated in the contract. The authorized signer may be required to refund the owner the total amounts. Banks are not allowed to monitor the purpose of why the authorized signer is withdrawing money for.

Rights and Responsibilities of Authorized Signer

The signer can check balances of the account and withdraw fundson behalf of the owner. He also has the power to freeze the account or stop the processing of fraudulent checks. An account can be closed through a written letter from the signer. The signer has the legal obligation to be honest and transparent to the owner at all times.

Hiring and Revoking of Authorized Signer

Filling up of the application is required when you are adding a signer to your account. Social Security cards and picture identification by both parties is needed. In case of an internet-based bank, follow the procedure and assign the financial obligations to your trusted friend or family.

An authorized sign can be revoked through a written letter to the bank by the owner in case of misconduct or termination of a contract. The signer has the legal mandate to protect the interest of the owner at all times and to act within the stipulated guidelines. Upon revoking of the signer, all transactions of the account are temporarily closed for 24 hours, and logins changed.

Comments

Post a Comment

Popular posts from this blog

Best Laser Check Printing Machine

Image
Our wide variety of products and services are best of the breed and an integral part of our client's operations. We offer coin counting, currency counting, MICR encoding, secure paper shredding and document handling solutions for financial institutions. For general businesses we offer MICR laser check printing, check signing, forms handling and secure document destruction solutions. If you are looking for a reliable and affordable Laser Check Printing service, please contact us today. We would be happy to discuss your specific needs and provide you with a quote. Laser Check Printing Solutions Our Laser Check Printing Solutions are the most advanced and secure in the industry. They offer features that include: -Tamper evident security -High quality graphics and fonts -Security against alteration of information We have been servicing our clients with hardware and software to help optimize workflow. Our products are the best in industry, helping improve operational se
Read more

Wycom Cheque Solution

Image
  Are you looking for an easier and more secure way of signing and printing your cheques? Look no further because Wycom has the solution for you! You can now sign print without breaking a sweat on any printer on your network. Wycom Enterprise Full Cheque Solution Enterprise enables your printers to sign your cheques, whether you are using blank or pre-printed stock cheque paper. It also makes it easy to access MICR cheque printers from all computers on your network.                Simple Don’t worry about the time it will take you to learn how to use this application. Wycom Enterprise is pre-programmed and does not require special software to run it. Once you connect it to your network, grant log-in access to authorized users, and it is ready for use! Secure Your logos, user accounts, cheque overlays, and valuable signatures do not exist within your system but are securely stored in the Wycom Enterprise hardware. You only grant access to a few authorized users who log in vi
Read more

Wycom Enterprise Check Signer

Image
Amongst the check signers we have tested, the Wycom Enterprise is the most secure. There is no chance that someone who can access your computer will access logos or signatures because the Enterprise check signer keeps them off your computer. They hold essential data within their system. Only a few users who have been granted access will be able to login using passwords. The signature suppression at predetermined amounts and nonresettable audit counter thresholds improve security. Optionally, you can store your virtual check forms. This will save you money and offer more security. The Enterprise serves institutions and departments of various sizes, offering solutions for payroll departments and accounts payable. The Wycom Enterprise can serve credit unions, banks, government entities, non-profit organizations, and others. Wycom Enterprise is pre-programmed and independent of any application software; thus, it is an easy plug and play installation. The Wycom Enterprise can be used
Read more