@Anonymous wrote:
Hi Lynn, thanks for your input. It won't be much ink wasted, but what exactly do you mean by signatory privileges? The CA should be out of the picture by then, anyway. Amd they are not mentioned in the promissory note!
Signatory privileges: Think in terms like if you're an AU on your wife's credit card account. The account's not in YOUR name, but you can sign your name in reference to transactions. You carry a limited amount of privileges on your wife's CC.
Legally, though, a R/E restricting the deposit or endorsing of an instrument, regardless of privileges, IS binding. The R/E would take precedence over the privileges. However, I'd think it's likely that it just wouldn't be processed or attributed to the account.
And yes, I do know that for a fact. We had a Cub Scouts checking account (obviously not-for-profit) and a parent disliked one of the Treasurers and did the same type of R/E as you're thinking of. Regardless of the signatory privileges, the Treasurer in question was NOT allowed to deposit the check. In fact, because of the nature of the account (the Treasurer was listed as an account-holder), it was not depositable at all.