OPENING A CHECKING ACCOUNT 63 the checks must sign the signature card. If the account is a partnership account the funds of which can be drawn by either of the partners, each signature of the firm's name THE NATIONAL TRADERS BANK OF COLUMBUS Whose signature appears on the reverse side of this card, my lawful attorney for me and in my name to draw checks against my account in The National Traders Bank of Columbus to endorse all Notes, Checks, Drafts or Bills of Exchange requiring endorsement for deposit or collection; to draw and accept all Drafts or Bills of Exchange; to waive demand, protest and notice of protest on all Notes, Checks, Drafts or Bills of Exchange; to do all lawful acts requisite for effecting these premises. This power shall remain in full force until notice in writing of revocation shall be given to said Trust Company by me, or, in case of my death, by my Executor or Administrator. WITNESS my hand and seal this. Witness: Seal Front and back of a signature card for the account of a depositor which is handled by an attorney. The back is the power authorizing the attorney to act for the depositor. The front shows the name of the account and the signature of the attorney. that is to be honored must be signed upon the card. Some banks permit a checking account subject to the order of either of two persons, say, husband, or wife, the balance to be paid to the survivor. One may act as agent and not reveal his principal, but if he is acting as trustee, executor, or administrator, a bank requires proof of the authority to act in such a capacity, so that it may be entirely safe in the way it coöperates in the handling of trust funds. Should the depositor wish another to have the power to indorse, or sign, checks (or do both) for him, he must file with the bank a power of attorney upon a form which the bank will furnish, showing definitely just what the limits of the power are. Such a power can be revoked at any time by written notice to the bank. An illustration of a power of attorney is as follows: "The Bank is authorized and directed to pay and charge to me, any checks, drafts, bills, notes, and acceptances drawn upon it or payable at its office, signed, drawn or accepted for me by... (a specimen of whose signature is at foot,) who is hereby constituted my attorney in fact for the purposes hereof. Said bank is also authorized and directed to accept the endorsement of my said attorney for me, upon notes, bills, drafts, checks and acceptances for credit, discount and collection. The authority hereby conferred shall continue in force until rescinded in writing." If the account is that of a corporation, it is opened in the name of the corporation. The bank should be handed a certified copy of the resolution of the board of directors, which designated the bank to be used and a certified copy of the by-laws which outlines the powers of the president, secretary, cashier, treasurer, or other officer with whom the bank is to deal. The bank must be certain of who is to handle the funds of the corporation, who has the power to sign checks and make indorsements, and who is authorized to make loans. The signatures of all such officers are filed with the bank. A corporation may require all its checks to be signed by two or more officers, for the genuineness of which signatures it holds the bank responsible. These officers sign the checks in order, and not only act as reviewers of the payments made, but minimize the danger of forgery.✔ The customer receives free a pass book in which the VARIETIES OF CHECK SIGNATURES 65 teller enters each deposit as it is made, a check book, or a pad of blanks, and, if he wishes, coupon envelopes and deposit slips. At a meeting of the Board of Directors of the... National Traders Bank of Columbus held July 9, 1983 the following resolution was adopted: "RESOLVED, That the President, Vice-President and Cashier of this bank are and each of them is hereby authorized to borrow money from time to time on behalf of this bank from the MELLON NATIONAL BANK of Pittsburgh, and for such purpose to make, execute and deliver the promissory notes of this bank, and to pledge as collateral security for the payment thereof any of its bonds, stocks, bills receivable and other securities; and such officers are further respectively authorized to procure the said MELLON NATIONAL BANK to purchase any of the bills receivable of this bank, and to endorse same or otherwise guarantee the payment thereof to the said MELLON NATIONAL BANK. The action of the officers of this bank, or either of them, in heretofore borrowing money for account of this bank from said MELLON NATIONAL BANK, or in selling any of its bills receivable, and endorsing the payment thereof to the said MELLON NATIONAL BANK, is hereby ratified and confirmed. This resolution shall have the force and effect of a continuing agreement with said MELLON NATIONAL BANK, and shall be binding on this bank, and the successors of this present Board of Directors until resolution annulling it shall have been adopted and said MELLON NATIONAL BANK served with a certified copy thereof." We hereby certify that the foregoing is a true extract from the minutes of said meeting. ATTEST: 9. Aragon Preiden. Christopher Columbus Cashier and Secretary of Board. Resolution of the board of directors of a bank which authorizes certain officers to make loans in its behalf. 56. Varieties of check signatures. The check signature as well as an indorsement should show the name of the account and the capacity in which the signer acts. One's name by itself indicates a personal act. David Davis signs as follows depending upon the capacity in which he acts: THE DAVIS COMPANY JOHN JONES By David Davis, Agent By David Davis, Attorney ESTATE OF JOHN JONES, DECEASED By David Davis, Executor Trustee for John Jones David Davis Guardian of John Jones Such signatures relieve the officer, or agent, from personal liability, provided he has acted within his authority. The mere addition of a word as "agent," or "treasurer," to indicate a representative capacity, but not revealing one's principal carries no exemption from personal liability. 57. Deposits for credit. These consist of coin, currency, checks, money orders, bond coupons if due, and prime sight drafts. Any first-class item which is regularly paid upon presentation and which in all probability will be paid is acceptable to a bank as cash from a person, firm, or corporation, of sufficient responsibility, especially if a cash balance is carried that warrants a bank in making such an advance of money. If the depositor has the slightest doubt about an item, he will not ask for cash credit. A coupon clipped from a bond of the U. S. Government is as good as a money order, and one of the International Harvester Co. is as good as its check. A banker's sight bill is not questioned, and a draft of Marshall Field & Co. drawn on the Carnegie Steel Co. has more security behind it than many a banker's bill. What is to be treated as cash is a matter of arrangement between a depositor and his bank, but every item that is not paid is charged back to the account to which it was credited, since all credits are subject to successful collection (see 64). In making a deposit 1. See that all items, even if payable to bearer (see 62), are properly indorsed. If the name is wrongly designated or misspelled, the item should be indorsed as written, and 6 John J. Crawford's Annotated Negotiable Instruments Law. Sec. 39. (Baker Voorhis and Co., New York, 1916.) DEPOSITS FOR CREDIT 67 the proper signature added. Indorsement should be made transversely on the back about one inch from the left, or under any prior indorsement. A rubber stamp may If any of within Coupons are refused, return in this envelope with reason Envelope to contain bond coupons offered by a depositor for credit or collection. be used. The "indorsement in full" (see 22) is the best 7 John J. Crawford's Annotated Negotiable Instruments Law. Sec. 73. 8 Ibid., Sec. 61. |