Bank signature cards were used by banks to minimize the risk of cashing fraudulent checks. They once compared the signatures on checks to those on the signature cards. However, with the advent of electronic banking, signature cards have little significance in the industry. Boards should decide among themselves which directors (or if all) will be authorized to sign checks.
Reserves. Even though banks no longer monitor signatures, the Davis-Stirling Act requires that all reserve transfers by associations be authorized by at least two directors.
ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.