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Subject: Vetting bank account signatories
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Author Messages
RichardE10
(California)

Posts:18


11/08/2021 5:26 AM  
Should our signatories for our bank accounts under our HOA's direct control be vetted? Such as a credit background check? We have CDs at a bank other than the bank where our tw accounts used by our managing agent are located.
MelissaP1
(Alabama)

Posts:10584


11/08/2021 5:50 AM  
Well considering a HOA is not nor qualifies to give one's social security number to, that could be an issue. A HOA does not qualify for credit checks via Social Security #'s. If your a board member and elected then you are qualified.

Former HOA President
CathyA3
(Ohio)

Posts:2588


11/08/2021 6:04 AM  
You'll probably need to check state law about this, and it would be a great question to ask the HOA attorney.

Some states and some communities prohibit convicted felons from serving on HOA boards. However, these laws generally don't address things like bankruptcies. If the person has a mortgage, obviously they were credit-worthy at some point - but that's just a snapshot in time, it says nothing about current financial issues. And there are limits on how intrusive an HOA can be.

My not-in-California take on it is that I understand the reason for doing something like this, but the law may not support it. And the time to do it is before electing or appointing a person with issues to a position where those issues are a problem.
SheliaH
(Indiana)

Posts:4284


11/08/2021 7:56 AM  
There are other ways to protect the bank accounts, such as requiring two signatures if a check will exceed a certain amount. The checks should match the amount listed on a bill or invoice - nothing should be paid without them. Someone (like the treasurer) should be reviewing the monthly income/expense statements every month, which may include the bank statement itself. The CAI website also has several educational resources on various checks and balances associations can use to protect themselves against waste and embezzlement
MaxB4
(California)

Posts:1594


11/08/2021 8:27 AM  
Signer need to fill out paperwork through the bank in which the account is held. Those forms follow the protocol of the Patriot Act. As a management company, I would have no issue providing a background check to clients. Some of those board controlled reserve accounts have $1M or more in them.
JohnC46
(South Carolina)

Posts:11659


11/08/2021 11:24 AM  
Our PM can make deposits to our two reserve account in two different banks. Withdrawals/transfers have tho be approved by the Pres. and the Treasurer (myself).
LetA
(Nevada)

Posts:1462


11/08/2021 11:52 AM  
Set up the CD with two signers on the CD . Also, who is holding the CD?
LetA
(Nevada)

Posts:1462


11/08/2021 11:56 AM  
Posted By JohnC46 on 11/08/2021 11:24 AM
Our PM can make deposits to our two reserve account in two different banks. Withdrawals/transfers have tho be approved by the Pres. and the Treasurer (myself).





Years ago anyone can walk into a bank and make a deposit into a random strangers account. Recently I was put through the gammit just trying to make a cash deposit into my mortgage escrow account
without the bank making me jump through a bunch of hoops.
MaxB4
(California)

Posts:1594


11/08/2021 12:42 PM  
Posted By LetA on 11/08/2021 11:56 AM
Posted By JohnC46 on 11/08/2021 11:24 AM
Our PM can make deposits to our two reserve account in two different banks. Withdrawals/transfers have tho be approved by the Pres. and the Treasurer (myself).





Years ago anyone can walk into a bank and make a deposit into a random strangers account. Recently I was put through the gammit just trying to make a cash deposit into my mortgage escrow account
without the bank making me jump through a bunch of hoops.



It's called the Patriot Act.
PatJ1
(North Carolina)

Posts:290


11/08/2021 1:12 PM  
Posted By MaxB4 on 11/08/2021 12:42 PM
Posted By LetA on 11/08/2021 11:56 AM
Posted By JohnC46 on 11/08/2021 11:24 AM
Our PM can make deposits to our two reserve account in two different banks. Withdrawals/transfers have tho be approved by the Pres. and the Treasurer (myself).





Years ago anyone can walk into a bank and make a deposit into a random strangers account. Recently I was put through the gammit just trying to make a cash deposit into my mortgage escrow account
without the bank making me jump through a bunch of hoops.



It's called the Patriot Act.




At the "stagecoach bank", and a couple of other banks from what I've read, only a signer on the account can make a cash deposit to an account. No matter how small, they must hand over their driver's license for recording when making the deposit.

Board members are volunteers. Many have no idea what they're doing. Educate them. Don't beat them up.
PatJ1
(North Carolina)

Posts:290


11/08/2021 1:27 PM  
Posted By RichardE10 on 11/08/2021 5:26 AM
Should our signatories for our bank accounts under our HOA's direct control be vetted? Such as a credit background check? We have CDs at a bank other than the bank where our tw accounts used by our managing agent are located.




Are you contracted with an MC who carries insurance, or is your HOA self managed?

Board members are volunteers. Many have no idea what they're doing. Educate them. Don't beat them up.
LetA
(Nevada)

Posts:1462


11/08/2021 2:10 PM  
Posted By MaxB4 on 11/08/2021 12:42 PM
Posted By LetA on 11/08/2021 11:56 AM
Posted By JohnC46 on 11/08/2021 11:24 AM
Our PM can make deposits to our two reserve account in two different banks. Withdrawals/transfers have tho be approved by the Pres. and the Treasurer (myself).





Years ago anyone can walk into a bank and make a deposit into a random strangers account. Recently I was put through the gammit just trying to make a cash deposit into my mortgage escrow account
without the bank making me jump through a bunch of hoops.



It's called the Patriot Act.




I was still abel to do that after the patriot act.. this has only been in the few years. The bank in particular would'd be a great catch even after all that running to catch them paid off.
These gluteus maximus clowns are messing with people that don't want sky rocketing mortgager payments because they keep failing to properly administer escrow accounts.
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