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Check Authorization Letter for the United States

Check Authorization Letter Template for United States

A Check Authorization Letter is a formal document used in the United States that grants specific individuals or entities the authority to write, sign, or process checks on behalf of the account holder. This document is governed by federal banking regulations, including the Uniform Commercial Code and state-specific banking laws. It typically includes detailed information about the parties involved, the scope of authorization, duration, and any limitations or conditions attached to the check-writing authority.

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What is a Check Authorization Letter?

The Check Authorization Letter serves as a crucial document in U.S. banking and business operations, providing a secure and documented means of delegating check-writing authority. This document is essential when account holders need to authorize others to manage financial transactions on their behalf, whether for business operations, personal matters, or institutional requirements. The Check Authorization Letter must comply with federal banking regulations and state-specific requirements, including the Uniform Commercial Code and Bank Secrecy Act, and typically includes specific details about authorized amounts, duration, and security measures.

What sections should be included in a Check Authorization Letter?

1. Date and Location: Current date and place of writing

2. Bank Information: Complete details of the bank where checks will be processed, including bank name, address, and routing information

3. Authorizer Details: Full name, address, and contact information of the person giving the check authorization

4. Authorized Party Details: Full name and details of person/entity being authorized to process checks

5. Authorization Scope: Specific details about what is being authorized including amount limits, frequency of checks, and purpose

6. Duration: Time period for which the check authorization remains valid

7. Signature Block: Space for authorizer's signature, printed name, and date

What sections are optional to include in a Check Authorization Letter?

1. Revocation Terms: Optional section detailing the conditions and process for withdrawing the authorization

2. Security Provisions: Optional section specifying additional security measures or verification procedures for check processing

3. Liability Clause: Optional section outlining responsibilities and limitations regarding unauthorized transactions

4. Multiple Account Authorization: Optional section for cases where authorization covers multiple bank accounts

What schedules should be included in a Check Authorization Letter?

1. Schedule A - Void Check: Attached copy of a voided check from the relevant account

2. Schedule B - Identification Documents: Copies of required identification documents for verification purposes

3. Schedule C - Account Documentation: Supporting bank account documentation or relevant statements

4. Schedule D - Authorization Limits: Detailed schedule of authorized check amounts, frequencies, and specific limitations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Sector

Banking

Cost

Free to use
Clauses














Relevant Industries

Banking and Financial Services

Business Services

Real Estate

Healthcare

Education

Relevant Teams

Finance

Treasury

Accounting

Legal

Operations

Relevant Roles

Chief Financial Officer

Finance Manager

Account Manager

Treasury Manager

Business Owner

Industries

Uniform Commercial Code (UCC): Primary legislation governing check transactions and banking relationships, particularly Article 3 (Negotiable Instruments) and Article 4 (Bank Deposits and Collections)

Electronic Fund Transfer Act (EFTA): Federal law governing electronic fund transfers, relevant when the check authorization includes electronic check conversion provisions

Federal Reserve Regulation CC: Federal regulation that governs check processing, holds, and funds availability requirements for financial institutions

Bank Secrecy Act (BSA): Federal law requiring compliance with anti-money laundering requirements and reporting of certain transactions

State Banking Laws: State-specific regulations that may impose additional requirements on check authorization procedures and banking transactions

Fair Credit Reporting Act (FCRA): Federal law relevant when check authorization involves credit verification or reporting procedures

Gramm-Leach-Bliley Act: Federal law governing financial privacy protection requirements in banking and financial services

Check 21 Act: Federal law allowing for electronic check processing and the use of substitute checks in the check clearing process

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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