A bank authorization letter is a document written to a bank, to state that a specific person has got authority or a certain rank to enter into a legally binding contract. The person is also able to spend a specific amount of money and can also take action concerning the account, this person can also entrust his or her duties to someone else or an organization. This document also allows a bank the authority to give out or share confidential information about a client’s account to another business or a given organization depending on whats written in the document. This letter contains the following contents.
Beginning dates of authorization
This is the date you write at the beginning of your letter. The date is to allow the bank to verify when it was written and if it’s outdated or in line with the current date. It shows when the other party can take authority. Having this date allows you to be able to prove yourself if in any case it is disputed.
Reasons for giving authority
This is where you explain to the bank why you have chosen a certain person to have your authority and what has caused you to give out that authority. giving this reasons allows you to avoid legal problems with the bank and helps you have proof if you incur problems in the future.
Duties of the person given authority
The purpose of this is being specific on what should be touched and what should be left alone. It helps the bank to follow the duties given and give account. This also puts a limit on the transactions to be withdrawn and whatever the person can do with the authority given.
Ending dates of authorization
The ending dates show when you will resume your duties again as the owner of the account if you are not able to resume then the dates can be extended by legal means. Ending allows you to have the authority back.
To write the bank’s letter of authorization, you need to make it short and make sure to be on point, excess information may cause a lot of confusion and may be misleading. This letter should be typed in a formal style. It is recommended to use a sample authorization letter for bank. It should also follow legal procedures to prove in court in case of disputes. The letter of authorization is very important and should not fall into wrong hands, therefore it should be sent to the bank using an authorized mail that is safe and secure.
Sample Bank Authorization letters
Sample Authorization Letter for Bank Statement
3rd October 2020
The Branch Manager
This letter is to inform you that I have a checking account of 873836836 in your branch. I would like the account statement at regular intervals to keep a check on my account activities, but my health is deteriorating fast day by day due to which I will be unable to visit your branch. For this, I have authorized my daughter, Irene King, to collect the account statement. I do not object if my daughter collects the statement on my behalf.
Kindly take the necessary action as early as possible. I would be delighted and grateful to you for your assistance in this case.
Sample Bank Authorization Letter for Account Closure
3rd October 2020
The Branch Manager
Subject: Authorization for Account Closure
I would like to inform you that I have had an account with your bank for 4 years with account number 3653363. Now, I am not able to continue transacting in that account as it was a salary account, and I was laid off three months ago. I would like to return all the items, including the checkbook, ATM card, and passbook.
It’s my humble request to transfer the balance to another account through a demand draft. Since I am not available as of now, I have authorized Janet Jackson to oversee the transaction. Kindly accord her the necessary help she needs to make the transaction a success.
Sample Authorization Letter for Operating Bank Account
This is to notify you of a very crucial matter that I currently have a savings account 3653637 in your bank; due to unavoidable circumstances, I won’t be able to conduct any transactions. I have authorized my brother, Mohammed Salim, and my business partner Rashid Abdallah to operate the account on my behalf.
I have given them the checkbook along with the ATM card. I kindly request you to allow them to conduct any transactions. Kindly contact me should you have any questions about the same.
Sample Authorization Letter to Change Nominee
With regards, I would like to inform you that I have an account on 37537373 in your branch. My daughter Sarah is the nominee for this account since the time of opening. I want to change the nominee to be my mother, Racheal. I have attached an Id proof of Rachael to prove her identity and address.
Therefore, I kindly request that you change the nomination and add my mother as the nominee. I will be pleased with your service.
Free Downloads (Examples & Samples)
The person giving the authority to a third party should send both the bank and the person receiving the authority a copy of the letter of authorization, this way both the bank and the third person have got proof of when they received it and at what point it was sent to them. In some cases people dismiss bank account as not important, make sure to mention the bank account number in your letter, it allows the bank to easily identify you and gives them ample time to process your request. Lastly, be sure to have your signature at the end of the letter and your name, it acts as proof that the document is not forged.