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Bank Allows Personal Checks on Corporate Account
What would be a bank's culpability for $500,000 of personal checks written for personal use by a person the bank added as signer on a corporate account that is not listed on the filed corporate resolution?
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 Without knowing more about the facts in what appears to be a hypothetical question, the liability of the bank would probably be somewhere between $0 and $500,000. As a general rule, if a bank allows access to an account by someone that's not authorized, the bank is liable for what happens. On the other hand, depending on the span of time involved, the business might have to accept some of the liability.
These questions are the sort of thing that courts, juries and judges often have to dissect, analyze and resolve. It's impossible to deal in anything but generalities here, without specifics.
Published on BankingQuestions.com 7/21/10
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