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Boardwalk :: Forum List Areas of Practice Conveyancing and SRO Enforcement
Agnes Chan
Visitor
 
 Legal Validity vs. Bank Policy - 2005/05/31 10:03 Can someone please enlighten me on the rationale why a prominent local bank insists on accepting ONLY a Letter of Authorisation ("LOA") to obtain a redemption statement from a client which contains the exact signature as per their bank's records (I presume as per the loan documents signed, which I'm not privy to yet) ?

Is it not sufficient that we, being advocate & solicitor has witnessed the proper signature of the client on the LOA? (which was as per the signature in the SPA).

I'm concerned of a situation whereby the bank might as well challenge the validity of signature on the SPA since they do not accept the signature on the LOA.

Very often, clients may sign 'differently', and they may not remember how they have signed for a particular document. But more importantly, in the eyes of the law (& Lawyers), isn't it sufficient that the document was witnessed to be executed by the proper signatory?

I wonder if this is a question of trust for lawyers...
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Andrew Wong Fook Hin
User

Fresh Forumer
Posts: 22
graphgraph
 
 Re:Legal Validity vs. Bank Policy - 2005/05/31 14:01 Most banks will have a specimen signature of account holder. Contractually this will be a mandate to the Bank to honour whatever is signed by the account holder.

If account holder's current signature differs significantly from what is on the specimen card, account holder should go to the Bank and update.

Here the Bank is just being careful that they do not breach confidentiality.

However I agree that the Bank should accept a mandate signed by account holder and witnessed by a solicitor. If signature differs substantially, Bank should so inform solicitor or account holder and request for an update of specimen signature.

Perhaps the CPC can bring this matter up with the ABM when they next meet.

Andrew Wong
Member of Conveyancing Practice Committee (CPC)
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