§ 9214 Corporate Officer Signing Authority

• •If a big company signs a paper (like a loan or contract) with someone, and the paper is signed by a boss (like the president or vice president) and another important person (like the secretary or money manager), it’s usually okay.
• •The paper is still valid even if the bosses didn’t have the right to sign it, unless the other person *knew* the bosses weren’t allowed to sign.
• •This rule helps make sure deals with companies don’t fall apart just because someone in the company signed something they maybe shouldn’t have.

A company takes out a loan from a bank, and the vice president and the secretary sign the loan papers.

Even if the company later says those two people weren’t supposed to sign the loan, the loan is still valid unless the bank *knew* they weren’t allowed to sign. The bank can still make the company pay the money back.