signature authority

Definitions

1. 1

   The authority of an employee acting unilaterally to commit an employer to a contract.

   • Some small banks still use this model, but larger institutions tend to entrust a single individual with signature authority, at least to a certain loan dollar amount.
2. 2

   The maximum value of such contract.

   • As a first level manager my signature authority is $500.
3. 3

   Control over a financial account with ones signature.

   • Officers or employees who file an FBAR to report signature authority over an employer’s foreign financial account don’t need to personally keep records on their employer’s accounts.

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