It is critical for every loan transaction that the party signing is authorized to do so, in order to bind the borrowing party. In most cases, the borrower is not an individual – it is a company, such as an LLC, corporation, or trust. To ensure that the parties signing are authorized to do so, it is important to take the necessary steps to secure the right signature authority.
The process of identifying and authenticating signature authority can be a complex exercise, depending on the type and size of the organization. Procedures such as authentication of the signer’s identity, receipt of the original signed agreement on file, and confirmation of the signer’s authority should all be taken into account. It is essential to verify the authority of the signer in order to ensure an agreement can be properly enforced. Additionally, in the case of a multi-party transaction, it is important to check the signature authority of each co-signer respectively. Complying with signature authority protocols is critical in order to ensure contract obligations are binding and secure for all parties.
Bullet Points:
– It is important when dealing with a loan transaction to ensure that the party signing is authorized to do so
– The process of verifying signature authority can be complex, depending on the type andsize of the organization
– Authentication of the signer’s identity and confirmation of the signer’s authority should both be taken into account
– If there is more than one co-signer, it is important to check each signers’ authority
– Compliance with signature authority protocols is essential for contract obligations to be binding and secure
You can read this full article at: https://geracilawfirm.com/getting-signature-authority-down-right/(subscription required)
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