It is common practice for the board of directors for a homeowners association to designate one or more individuals to be the authorized signers on the associationsbank accounts. Some boards adopt resolutions that authorize all of the current board members to sign on the associations accounts in an effort to make sure there is always someone available to sign necessary checks. Some may even authorize property managers or other personnel who are not directors of the association to sign on the accounts. Other associations are more restrictive and elect to authorize some, but not all directors to sign on the accounts in order to maintain stricter control over the associations funds.

Before adopting resolutions regarding those who are authorized to sign on the associationsbank accounts, it is critical to understand what the requirements of your associations governing documents and state laws are concerning those who are authorized to sign on an associationsbank accounts. For example, in California, the law requires that at least two directors must sign checks for withdrawals from the associations reserve accounts, but there are no statutory requirements for the number of signatures required for withdrawals from operating accounts. Even though state laws may be silent on the number of authorized signors on a given type of account, it is likely that the associations governing documents (generally found in the bylaws) contain provisions that must be complied with. The following is a typical provision that may be found in an associations bylaws:

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