A receiver duly appointed by the Comptroller of the Currency to take over an insolvent bank has authority to withdraw the bank's funds from its correspondents; the directors' authority to sign ceases with the assumption of control by the Comptroller. The signature department may obtain from the Comptroller a certificate relative to the appointment of the receiver, together with the receiver's signature; or it may get the signature directly from the receiver and have his appointment confirmed through the bank's Washington agent. In cases of consolidations or changes of title, even if there be no change in the official staff, it is well for the signature department to procure new resolutions from the directors and new sets of signatures. With respect to state banks, trust companies, and savings banks, the same procedure is followed in procuring signatures and authorities, except that in case of receiverships the authority is procured through the Superintendent of Banks and the court of record concerned.
Signatory Authority of Corporations and Partnerships When a corporation opens an account with the bank, the sig nature department should procure from it for file a copy of the by-laws or such articles therefrom as cover its financial affairs, and have them certified by the secretary over the corporate seal. Sets of signatures of its officers, similarly certified, are also pro cured. If such certified list is not procured, but the officers send cards signed officially, it may be taken for granted that the per sons whose names appear on the cards have been duly elected and arc the ones to whom the by-laws or resolutions apply. Care should be taken to see that the by-laws contain authority for every signature given; if any discrepancies appear, a resolution of the board of directors should be requested covering the defects. The procedure in case of receivers for corporations is practically the same as for banks, although there is more detail connected with the court order. When two or more receivers are appointed, it should be noted whether the authority extends to separate signatures or joint signatures.
When a partnership opens an account, the signature depart ment procures the signatures of the partners, and it is assumed that they have equal authority. Sometimes the authority is limited by terms of the partnership agreement, but ordinarily the credit department will have discovered that point. The bank is liable for payments beyond the known authority to sign. If it is the intention of the partners to allow non-partners to sign, a power of attorney is required; such power of attorney may be very full or may be limited in scope. If possible, the power of
attorney procured should contain a clause to the effect that revo cation shall be recognized only by notice in writing served upon the bank. If, by reason of death, marriage, bankruptcy, or trans fer of interest, of one of the partners, the partnership is terminated and the remaining partners wish to continue the business, it is necessary to procure new powers of attorney. If a new member is admitted to the partnership, a new power of attorney must be issued and the old one revoked. The powers of attorney may be signed by one or more, or by all of the partners; the signature department may require that each member of the partnership sign.
Account of Deceased Depositors As soon as the signature department hears of the death of a depositor it should send a memorandum to all departments deal ing directly with the customers. Note of the death and date is made on the signature cards. This stops all transactions im mediately, and all delegated authority, if any, is automatically canceled. The newspapers should be watched for death notices. If the decedent left a will and named the executor, and the pro bate court issues letters testamentary, these letters and the will constitute the executor's credentials and delimit his authority. If the executor has died before the party making the will, or if the decedent died intestate, the court appoints an administra tor and issues letters of administration, which state his authority. The executor or administrator, after ascertaining the amount of money in the bank to the credit of the deceased, presents the will and his credentials to the state comptroller, who issues a waiver of inheritance tax, which serves as a proof that this money has been registered with the comptroller. This waiver authorizes the bank to transfer the balance to the executor or administrator. This procedure may, of course, differ somewhat according to state law.
Trustee's, Joint, and Other Accounts Trustees are usually designated under a will to hold and man age certain undertakings, such as a charity, or to pay income to certain persons until the occurrence of some event. Such testa mentary trustees must qualify under the law of the state in which the executor is proceeding and are required to get a letter of authority from the court. The signature department procures a copy of this letter for its files. If more than one trustee is ap pointed, they must act in conjunction. The authority of a trus tee cannot be delegated except by order of the court.