What is a Banking Resolution?
A Banking Resolution is document which sets out who are the authorized representatives of a Corporation with respect to transacting with a specific bank. This document can be made in order to initiate the opening of a corporate bank account through a representative, or in furtherance of continuing a business relationship with a bank through a representative.
Why do you need to use a Banking Resolution?
A Banking Resolution expedites and facilitates a Corporation’s ability to make banking transaction by delegating these functions to specific persons or representatives. The Banking Resolution also mentions what type of transactions the representatives can enter into on behalf of the Corporation, which may include the power to lend, borrow, invest, use corporate property as security for indebtedness, or serve as guarantor or surety for a third party debt.
It would also be highly impractical for the Corporation to have a board resolution for each and every banking transaction, which would be required if there is no executed Banking Resolution.
When do you need to use a Banking Resolution?
A Banking Resolution is normally required by banks before a Corporation can open a bank account or do transactions through a representative.
Are there any deadlines or times for when this form is needed?
A Banking Resolution is normally extracted from the first meeting of the Corporation, which is understandable since opening or transacting with a bank is an essential corporate matter.
What are the most common mistakes to avoid?
Common mistakes in a Banking Resolution include failing to indicate the specific powers of authorized representatives, or missing on required details concerning the Corporation.
What are the main things that go on this form?
- Name, place of registration, and date of the Banking Resolution.
- The names and details of the authorized representatives of the Corporation.
- The specific powers delegated to the authorized representatives signified under the Banking Resolution.
- An attestation and signature of the relevant corporate officer (normally the corporate secretary) which certifies that a board resolution took place and covered the matters referenced in the Banking Resolution.
Do I need to use a lawyer, accountant or notary to help me?
While helpful, it is not a requirement to have a lawyer, accountant, or notary help you when drafting or entering into a Banking Resolution.
What is the easiest way to create a Banking Resolution?
Using an easily fillable and intelligent legal template is the best way to create a Banking Resolution, considering the complexity and multifactorial elements that comprise the said document. On your own, it would be very easy to make mistakes or miss important stipulations.
Why use our Banking Resolution generator?
Our intelligent legal template at FormPros will help you instantaneously generate a customized Bank Resolution. All you would need to do is to answer a few simple questions while our smart template automatically generates your Bank Resolution. This is certainly easier and a lot more convenient as compared to the risk of drafting the agreement on your own, or even hiring an expensive lawyer.