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.
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.
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 2006
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 2006.
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.
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