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Deposit Accounts, Business Accounts: Annual Request for Information
Printer-friendly VersionQuestion:
Does the Texas Finance Code require that we request current information from business account holders? I remember a provision that required the bank, at least annually, to request to provide notice to business account holders asking if their information was correct.
Answer:
Yes – that remains a requirement for Texas banks.
Sec. 277.002. ACCOUNT INFORMATION REQUIRED. (a) A financial institution shall require, as a condition of opening or maintaining a business checking account, that the applicant or account holder provide:
(1) if the business is a sole proprietorship:
(A) the name of the business owner;
(B) the physical address of the business;
(C) the home address of the business owner; and
(D) the driver's license number of the business owner or the personal identification card number issued to the business owner by the Department of Public Safety; or
(2) if the business is a corporation or other legal entity, a copy of the business's certificate of incorporation or a comparable document and an assumed name certificate, if any.
(b) The financial institution shall request that the account holder inform the institution at least annually of any changes in the information the institution is required to obtain under Subsection (a).
Added by Acts 1999, 76th Leg., ch. 998, Sec. 1, eff. Sept. 1, 1999.
BTW:
Sec. 277.001. DEFINITIONS. In this chapter:
(1) "Business" means a legal entity, including a corporation, partnership, or sole proprietorship, that is formed for the purpose of making a profit.
(2) "Business checking account" means an account at a financial institution from which withdrawals may be made by a business by check or draft. The term includes a money market account, a negotiable order of withdrawal account, or other account at a financial institution in which the account holder has check writing privileges.
(3) "Financial institution" means a state or national bank, state or federal savings and loan association, state or federal savings bank, or state or federal credit union doing business in this state.
You should be able to accomplish this with a simple statement stuffer.
Sec. 277.002. ACCOUNT INFORMATION REQUIRED. (a) A financial institution shall require, as a condition of opening or maintaining a business checking account, that the applicant or account holder provide:
(1) if the business is a sole proprietorship:
(A) the name of the business owner;
(B) the physical address of the business;
(C) the home address of the business owner; and
(D) the driver's license number of the business owner or the personal identification card number issued to the business owner by the Department of Public Safety; or
(2) if the business is a corporation or other legal entity, a copy of the business's certificate of incorporation or a comparable document and an assumed name certificate, if any.
(b) The financial institution shall request that the account holder inform the institution at least annually of any changes in the information the institution is required to obtain under Subsection (a).
Added by Acts 1999, 76th Leg., ch. 998, Sec. 1, eff. Sept. 1, 1999.
BTW:
Sec. 277.001. DEFINITIONS. In this chapter:
(1) "Business" means a legal entity, including a corporation, partnership, or sole proprietorship, that is formed for the purpose of making a profit.
(2) "Business checking account" means an account at a financial institution from which withdrawals may be made by a business by check or draft. The term includes a money market account, a negotiable order of withdrawal account, or other account at a financial institution in which the account holder has check writing privileges.
(3) "Financial institution" means a state or national bank, state or federal savings and loan association, state or federal savings bank, or state or federal credit union doing business in this state.
You should be able to accomplish this with a simple statement stuffer.