A signature authorization letter is a formal letter that allows a person to appoint someone else to be the signature authority for any required work on his/her behalf when unavailable. With this letter, you formally allow another person designated by you to hold power to sign in your absence hence transferring your responsibilities to the same. It is also used when you need a permit to carry out certain tasks & inform the authorities about it.
A signature authorization letter must be kept business oriented as it is used in a professional environment. The clarity and precision of details are equally important as you are offering the right to sign on your behalf to someone else and there must not be any confusions about any point. You must ensure that this must not be put to a wrong use.
When it is Used
It is used for various purposes such as processing documents, signing certain papers or collecting documents. They are not just restricted to business purposes but are also used when you are unavailable to sign for Bank Deals, Credit Cards, Insurance issues, children custody, etc.
How to Write Signature Authorization Letter
While writing a Signature Authorization Letter, you must make sure that the language is kept simple & easy to understand. It must be straight to the point. Mention the person you are nominating as the authorized signatory during your absence, along with a valid reason for the action. The date of beginning & the date of ending this signature authorization delegation must be stated along with the duration of the tenure. Also, the situation of use must be mentioned explicitly leaving no rooms for confusion & avoiding misuse of the power.
Important Details of an Effective Signature Authorization Letter
Some of the basic details that must be included in a signature authorization letter include:
- The date the letter was written
- Name, address and contact details
- Basic information about the recipient of the authorization letter
- A great subject line that gives an overview of the transaction where the letter will be used authorized
- The first paragraph must contain the purpose of the letter or the reason for writing the letter. It should also include the name of the person to sign documents on your behalf
Sample Letter of Signature Authorization
where a person appoints his son as the signatory authority for his bank related documents as he is not around for a few days. This will further clarify the doubts.
Mr. Keith Collins
Manager, ABC Bank
2645, Lilac Lane,
Charlotte, New York- 28202.
Subject: Sample Authorization Letter 1
4th September 20xx
Kindly take this as a Letter of Signature Authorization wherein I am appointing Mr. Andrew Woods as the Signatory Authority for all Bank related documents till 15th September 20xx.
I am leaving for Germany to attend a family function & will return on the date mentioned above. Hence, I will not be here to handle up the bank-related work personally.
In case of verification or urgency, feel free to connect with me at 9080704050 or drop a line at [email protected]
Examples & Templates (Free Downloads)
Basic Things to Keep in Mind When Writing a Signature Authorization Letter
Signature authorization letters are not limited to be used for business and corporate processes; some are usually made for matters related to child custody, bank transactions, loans and issuance of insurance, and many more application procedures.
Some of the Basic Things to Keep in Mind Include:
- Ensure that you keep in mind the duration of the letter’s effectiveness. Write the exact date on which the transaction is set to begin and the date where the authorization signatory will lose their power to act on your behalf.
- The tenure duration should be clearly identified so that any miscommunication or misunderstandings can be prevented from happening. Doing this will help you limit not only the activities in which the signatory will be involved but also the time where you can be represented by them.
- Remember that a signature authorization letter should be addressed to the person who will require your Signature for specific transaction or documents and not you, the person whom you are authorizing to represent you when you are not available
- Be very detailed when discussing the situation of the use of the Signature. You have to properly present specific instances that required the Authorization on your behalf during your absence. There should be no gray areas, misleading information, vague discussions, incomplete process presentations, and any confusing statements that may result in the abuse or misuse you have given to your representative.
Importance of a Signature Authorization Letter
Assigning someone to sign materials and documents during your absence can go in two different ways. Your plants and intentions may be fulfilled, or the power you have granted the representative may be abused. This is why it is crucial that you come up with an effective authorization letter that can set the direction of the transaction.
Here are some of the basics why it is important for you to create an authorization letter whenever you plan to give your representative the right or the authority to sign specified documents on your behalf.
- The signature authorization letter can be used as a reference if there is a need to review the responsibilities that you have granted to the person who is tagged as your authorized representative. This can help businesses, establishments, and/or organizations to clarify concerns and issues pertaining to the transaction.
- The letter can help remove any confusion about the activity. If you are looking to authorize someone to act on your behalf, you have to make sure that you are very clear with the range of the documents or materials that the individuals can sign on your behalf, as well as the decisions that they can make on your behalf.
- A signature authorization letter is often required whenever you are looking to assign someone else to sign a document on your behalf if you want a transaction where your Signature is required to push through and be realized when you are not available to sign the documents.