corporate-resolution-bank-account

name	corporate-resolution-bank-account
description	Drafts a board resolution authorizing the opening and management of corporate bank accounts, including signatory designation, account types, borrowing authority, and secretary certification. Triggers when a financial institution requires formal board authorization to establish or manage accounts, when updating authorized signatories, or when documenting banking authority during entity formation or reorganization.
tags	["corporate","drafting"]

Corporate Resolution — Bank Account Authorization

Produces a board-level governance document that satisfies both internal corporate formality and bank due diligence for account opening, maintenance, and transaction authority.

Required Inputs

1. Corporation legal name — must match articles of incorporation exactly
2. State of incorporation
3. Adoption method — board meeting or written consent of directors
4. Financial institution(s) — named institution or class (e.g., "any FDIC-insured institution")
5. Authorized signatories — names, titles, tiered authority thresholds
6. Scope — account types, transaction types, borrowing authority (yes/no), dollar limits
7. Prior resolutions — to supersede, if any
8. Bylaws — provisions on banking authority and consent requirements

Quick Start

1. Collect all required inputs above.
2. Confirm bylaw authorization for board delegation of banking authority.
3. Confirm adoption-method validity under applicable state law.
4. Draft resolution sections in order: Header → Operative Resolutions → Certification.
5. Verify legal name, signatory tiers, and dollar thresholds before finalizing.

Output Structure

1. Header & Recitals

Field	Content
Title	RESOLUTIONS OF THE BOARD OF DIRECTORS OF [CORP NAME]
Date	Adoption date
Method	Board meeting (quorum + notice) OR written consent (check state unanimity requirement)
Bylaw reference	Cite specific provision authorizing banking resolutions
Purpose	Brief operational need (payments, payroll, receivables, etc.)

2. Operative Resolutions

Draft each as a separate RESOLVED clause:

• Account Authority — Authorize named officers to open, maintain, modify, and close specified account types (checking, savings, money market, CD, other) at designated institution(s).
• Signatory Designation — Tiered structure:
  • Single signature: transactions up to $[threshold]
  • Dual signature: transactions exceeding $[threshold]
  • Covers: checks, wires, ACH, online banking, bank-required forms
• Transaction Scope — Deposits, withdrawals, standard transactions. If borrowing: specify dollar cap, permitted obligation types, whether collateral pledges need separate approval.
• Document Execution — Officers may execute all bank-required documents, signature cards, and agreements without further board action for routine forms.
• Ratification — Ratify prior banking acts if accounts/transactions predate formal authorization.
• Supersession — Supersedes all prior banking-authority resolutions, effective [date].
• Continuing Authority — Remains in effect until amended/revoked by board action. Corporation must notify institution of changes. Optionally: auto-terminate on signatory separation.

3. Secretary Certification

Must certify:

1. Resolutions were duly adopted on [date] per bylaws and state law
2. Resolutions have not been amended, modified, or revoked
3. Resolutions remain in full force and effect

Include: printed name, title (Secretary/Assistant Secretary), date, corporate seal if required.

Pitfalls & Checks

• Name mismatch — Corporation name must match articles exactly; most common cause of bank rejection
• Bylaw gap — If bylaws don't authorize banking delegation, amend bylaws first
• Consent threshold — Most states require unanimous written consent unless bylaws provide otherwise; verify state statute
• Quorum — For meeting adoption, confirm quorum present throughout; document in minutes
• Borrowing caps — Always specify dollar limits; unlimited borrowing authority creates fiduciary exposure
• Signatory changes — Banks typically require re-certification of the resolution (not just new signature cards) when officers change
• Stale certification — Banks often require certification dated within 30–90 days; flag for recurring use
• State law — Procedural validity governed by state corporate code (e.g., Delaware § 141, California Corp. Code § 307) — verify applicable statute for client's jurisdiction