AUTHORITIES. The authorities which bankers may receive from customers are in connection with many different matters. In all cases they should be in writing, and, in many cases, bankers have their own printed forms, which they prefer to be used.
Authorities are given for a banker to pay, on certain dates, subscriptions to societies and clubs, premiums on policies, etc., also for the periodical transfer of an amount from the account of the customer giving the authority to the credit of an account with another bank or of another customer in the same bank. Such transfers are made in accordance with the instructions in the authority, whether weekly, monthly, quarterly, half-yearly, yearly, or on particular dates, or on par ticular occasions, as, for instance, where an authority is given to transfer a specified amount from a No. 1 account to a No. 2 account when the balance on the latter account is almost exhausted.
Bankers receive instructions to pay calls, to pay over certain sums in exchange for specified documents, and also to hand over documents in exchange for certain sums, and in each case the particular instructions contained in the authority must be carefully observed. A record is made in a diary of all special payments, and in some offices a note may also with advantage be kept in the bill case under the correct date. Where subscriptions and other periodical payments arc numerous, it is customary to keep a special book for the purpose, and detail under each day everything which is due to be paid on that day. (See BANKER'S ORDER.)
Authorities are often given in connection with signing upon accounts. In each case particulars of the authority, and, if only for a fixed period, the date of its expiry, should be noted in the ledger against the account. It is an advantage if these authorities are signed in the presence of a bank official. (See JOINT ACCOUNT, MANDATE.) There are also authorities to give up to a third party articles left for safe custody (see SAFE CUSTODY) and to give up deeds, certi ficates and other documents which are held as security for an overdraft or loan. When such authorities are acted upon, the person receiving the securities should, of course, give a receipt for them. Where a customer authorises a banker to lend his securities to a solicitor, an undertaking should be taken from the solicitor to return the securities. (See SOLICITOR'S UNDERTAKING.) An authority in connection with one matter must not be taken to include another, e.g., an ordinary authority for signing upon an account does not empower the person in whose favour it is given to withdraw securities or arrange an overdraft limit.
For convenience of reference, it is a good ' plan to sort the authorities into alphabetical cases, or to enter particulars of them in books, duly indexed, each entry and authority being numbered.