Can a business sign a check over to an individual as power of attorney to cash the check at the institution on which the check is drawn?
Untitled
Normally, it could not. If the business is a corporation, LLC or other separate legal entity, its governing board would have to specifically vote the authority of the individual to cash the check (such authorizations are rarely, if ever, given). Even if such an authorization is given or if no authorization is legally required, most banks would not cash a check payable to a business. They would, instead, suggest that the business deposit the check and issue its own check to obtain needed cash.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Normally, it could not. If the business is a corporation, LLC or other separate legal entity, its governing board would have to specifically vote the authority of the individual to cash the check (such authorizations are rarely, if ever, given). Even if such an authorization is given or if no authorization is legally required, most banks would not cash a check payable to a business. They would, instead, suggest that the business 