Is an electronic signature legally valid?

Yes in most commercial contexts under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Certain exceptions apply (e.g., wills, some court filings). Confirm whether the relying party accepts electronic records before sending.

When is notarization required by recipients?

Notarization is frequently requested by banks or title companies even if not statutorily required. For property or deed-related authority, some states require notarized signatures and witnesses. Confirm whether remote online notarization (RON) is acceptable.

How can an authorization be revoked effectively?

Revoke in writing, sign as an authorized officer, and deliver notice to all relying parties; record the revocation date. Where possible obtain written acknowledgements and update internal records to prevent continued reliance.

What supporting documents should accompany the letter?

Common attachments include a certified corporate resolution or minutes, EIN verification (IRS CP 575), a copy of the signatory's government ID, and any required power of attorney. Including these reduces the chance of refusal by banks or vendors.

Do state rules change notarization or witness needs?

Yes. States differ on witness counts, notarization, and RON recognition. New York uses ESRA rather than UETA and some states require extra witness or notary steps for real‑estate related documents. Check state statutes or counsel when unsure.

How long must I retain this authorization letter?

Retain for at least three years after revocation for routine business documentation; retain six years when tax or HIPAA records are implicated (IRC §6501(a); 45 CFR §164.530(j)). Follow industry or state-specific retention requirements if longer.

Electronic Signature
Templates
Miscellaneous
Authorized Person Business Letter

Authorized Person Business Letter

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

AUTHORIZED PERSON BUSINESS LETTER

Date:

Company Name:

Company Address:

Authorized Person Name: Title/Position:

RECITALS

WHEREAS, Company Name: (the "Company") requires that certain acts and transactions be performed on its behalf by an authorized representative; and

WHEREAS, Authorized Person Name: is qualified and willing to act as an authorized person for the Company within the scope set forth herein; and

WHEREAS, the parties desire to document the scope, limitations, duration and other terms of the authorization granted herein.

SCOPE OF AUTHORITY

The Company hereby appoints the Authorized Person to act on behalf of the Company for the purposes and subject to the limitations described below. The Authorized Person is authorized to take only the actions specifically enumerated in this letter; any action beyond the scope requires separate written authorization.

Describe specific authorizations and limitations:

PAYMENT TERMS

If compensation is payable to the Authorized Person for services performed under this authorization, the parties agree to the following terms:

Payment Amount (if any): Payment Schedule / Method: Late Fee / Interest on Overdue Amounts:

TERM AND TERMINATION

This authorization shall become effective on the Effective Date and continue in full force and effect until the Expiration Date or until earlier terminated in accordance with this section.

Effective Date: Expiration Date: Notice Period for Termination:

Either party may terminate this authorization for convenience by providing written notice to the other party in accordance with the notice period above. Termination shall not release either party from obligations incurred prior to the effective date of termination.

CONFIDENTIALITY

The Authorized Person acknowledges that in the course of performing duties they may receive or have access to confidential or proprietary information of the Company. The Authorized Person agrees to hold such information in strict confidence, to use it only to perform authorized duties, and not to disclose it to third parties without prior written consent of the Company, except as required by law. This confidentiality obligation survives termination of this authorization for a period of three (3) years.

GOVERNING LAW

This letter and any dispute arising out of or relating to it shall be governed by and construed in accordance with the laws of the jurisdiction indicated below, without regard to conflict of law principles.

Governing Jurisdiction (State or other):

ENTIRE AGREEMENT

This letter constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and communications, whether written or oral, relating to such subject matter. No amendment or waiver of any provision of this letter shall be effective unless in writing and signed by both parties.

REPRESENTATIONS AND CERTIFICATIONS

Each party represents and warrants that it has full power and authority to enter into this authorization, that the person signing below on its behalf is duly authorized to bind the party, and that the execution and delivery of this letter has been duly authorized by all necessary corporate or other entity action.

Additional Instructions or Special Conditions (optional):

Company (Printed Name):

By:

Date:

Authorized Person (Printed Name):

By:

Date:

What an Authorized Person Business Letter Is

An Authorized Person Business Letter is a written document by a company or other legal entity that designates an individual to act on the company’s behalf for specified transactions. It typically names the authorized person, defines the scope of authority, states effective and expiration dates, and includes signature blocks for an authorized officer. Organizations use these letters for banking access, vendor relationships, government filings, and recordkeeping. When executed properly, the letter supports third‑party reliance and may be notarized or electronically signed under ESIGN and UETA where permitted.

Why a Clear Authorization Letter Matters

Provides clear, auditable authority for third parties to rely on, reduces operational delay when granting account access or executing transactions, and documents internal governance. Properly drafted letters minimize disputes, streamline onboarding with banks and vendors, and support compliance when retained and signed correctly.

Typical Users and Scenarios

Typical organizations and roles that prepare or request an Authorized Person Business Letter include corporate officers, HR, legal, and finance teams.

Small business owners authorizing designees for bank accounts and vendor signings
Corporate finance teams granting payment or wire transfer authority to specific employees
Legal departments or outside counsel assigning limited transactional authority during deals

Use written authorization when external parties require proof of delegated authority or when internal controls demand documented signatory limits and audit trails.

Who May Sign or Be Named

Authorized Officer

An authorized officer (CEO, president, or corporate secretary) typically signs to delegate authority. Their signature confirms corporate approval and establishes the company’s intent; banks and government agencies commonly require an officer's signature or a board resolution to accept the letter.

Designated Agent

A designated agent or authorized person acts within limits set by the letter. The document should specify duties, account numbers, or transaction types. Firms often verify identity with ID, corporate records, or notarization before honoring the agent's authority.

Essential Elements of a Professional Letter

A professional Authorized Person Business Letter includes precise recipient details, a narrowly defined scope of authority, signature blocks, supporting documents, and clear term and revocation language to aid third‑party reliance.

Recipient Details

Include full legal name and contact for the institution or individual who will rely on the letter, specify department or account owner, and provide mail or electronic delivery instructions to reduce misrouting risk.

Authority Scope

Define precise permissions such as account access, contract signing, payment authority, and monetary thresholds; avoid blanket phrases like 'all matters' to prevent unintended delegation and disputes.

Term

State effective and expiration dates; include conditions for earlier termination and specify whether the authorization survives certain events like employee departure or corporate mergers.

Signatures

Provide printed name, title, signature, and date from an authorized officer; indicate whether notarization, witness signatures, or corporate seal are required by recipient.

Supporting Docs

Attach corporate resolutions, board minutes, EIN verification (IRS CP 575), and a copy of the authorized person's government ID to expedite bank and vendor acceptance.

Notarization

Note whether notarization or remote online notarization is required; some banks or agencies insist on notarized originals before honoring authority.

Step-by-Step: Draft, Approve, and Deliver

Follow these steps to draft, authorize, and deliver an Authorized Person Business Letter so third parties can rely on delegated authority.

01

Draft: State name, role, scope, dates, and limitations.
02

Authorize: Board minutes or officer resolution if required.
03

Authenticate: Sign by officer; notarize if requested by recipient.
04

Deliver: Provide original or e-signed copy to third parties.

Configuring an Online Template

Configure an online template to capture required fields, automated dates, and conditional blocks for scope and attachments.

Field	Configuration
Authorized Name	Single-line required text field (auto-detect)
Scope	Multi-line with checkboxes for actions and numeric limits
Attachments	Enable file upload; accept PDF, JPG, DOCX
Signature	Signer field with optional notarization workflow

Where to Send or File the Letter

Delivery depends on recipient requirements: provide originals to banks or government agencies, upload to vendor portals, or send electronically with verifiable audit trails.

Banks: Provide original with corporate resolution; bank may require notarization.
Vendors: Email or portal upload with copy of authorization and contact verification.
Government: Follow agency instructions; some require mailed originals or certified copies.
Internal: Retain original in corporate records and provide certified copies as needed.

Digital Signing and Submission Considerations

Ensure the platform supports strong authentication, audit trails, and secure storage to meet third-party and regulatory expectations.

File Formats: PDF, DOCX, image accepted
Auth Methods: Email link, SMS code, or KBA
Integrations: CRM and document storage integrations

Typical Timing and Processing Expectations

Timing varies by recipient; banks and agencies may need several business days to verify authority, and notarization or board approval can extend processing.

Bank verification time:

Typically 1 to 5 business days, varies by bank.

Notarization time:

Add 1 to 3 business days for scheduling and completion.

Board approval:

If resolution required, allow 1 to 2 weeks for meetings and minutes.

E-signature processing:

Instant delivery; third-party verification may take additional steps.

Record availability:

Signed copies should be accessible immediately; retention follows policy.

Common Preparation Mistakes to Avoid

Using vague scope language such as 'all matters' can create unintended authority; specify accounts, transaction types, monetary limits, and timeframes to prevent overbroad delegation.
Failing to attach corporate evidence (resolution, EIN letter) leads banks or vendors to refuse recognition; include supporting documents and contact information for verification.
Mismatched names or missing IDs cause delays and may trigger backup withholding or denial of access; verify spelling and provide government ID copies.
Not clarifying expiration or revocation process leaves lingering authority; include explicit revocation procedures and require recipient acknowledgment when the authorization ends.

Concise Risk Summary

Operational Risk: Unauthorized transactions possible

Financial Exposure: Losses or wire fraud

Regulatory Risk: Noncompliance with ESIGN/UETA

Tax Consequence: Backup withholding risk

Reputational Risk: Vendor trust erosion

Legal Disputes: Contractual authority contested

Real-World Examples

Two examples illustrate how organizations use authorization letters to delegate limited authority while maintaining compliance and auditability.

Martin Properties

Martin Properties used an online authorization letter to empower on-site managers to execute lease documents and vendor contracts.

Enabled remote closings and faster lease execution.
Tim Martin said: "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Fertility Centers

Fertility Centers of Illinois delegated administrative access for patient enrollment and billing through a formal authorization letter.

Reduced in-person paperwork and improved turnaround time for patient forms.
John Butler said: "The airSlate SignNow team has been exceptional, responsive, the API has been great, and we're extremely happy that we chose airSlate SignNow as a company."

Required Data Elements at a Glance

Authorized Person: Full legal name matching government ID

Position/Title: Job title within the entity

Scope of Authority: Specific actions and account limits

Effective Date: MM/DD/YYYY format; start date

Expiration Date: End date or 'until revoked' clause

Signatory Officer: Name and printed title of officer

Practical Tips to Reduce Risk and Delay

Adopt consistent templates, require supporting documentation, and use verifiable delivery methods to reduce processing time and legal exposure.

Limit authority with explicit boundaries

Draft the scope narrowly, list permitted transactions, and set monetary or temporal caps. Explicit limits reduce risk of unauthorized commitments and aid internal approvals and external verification by banks and counterparties.

Require supporting corporate documentation and resolution

Include a certified board resolution or officer certification that authorizes the delegation. Store originals centrally and provide certified copies to recipients; this prevents requests for additional proof and speeds acceptance by banks or government agencies.

Use secure e-signature workflows and audit

Select an e-signature solution that provides audit trails, signer authentication, and secure storage. Verify the recipient accepts electronic records under ESIGN (15 U.S.C. ch. 96) and UETA where applicable to ensure enforceability.

Maintain clear revocation and amendment records

Document revocations in writing, notify all recipients, and keep proof of delivery. Record the effective revocation date and retain both original and acknowledgement copies to prevent continued reliance on an invalid authorization.

eSignature Vendor Comparison for Authorization Letters

Comparison of common vendor criteria to consider when signing and delivering an Authorized Person Business Letter electronically; signNow appears first per platform order rules.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no credit card required	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions

Answers to common questions about drafting, signing, notarizing, and revoking an Authorized Person Business Letter, with practical steps for compliance and verification.

Need help? Contact support

Is an electronic signature legally valid?
Yes in most commercial contexts under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Certain exceptions apply (e.g., wills, some court filings). Confirm whether the relying party accepts electronic records before sending.
When is notarization required by recipients?
Notarization is frequently requested by banks or title companies even if not statutorily required. For property or deed-related authority, some states require notarized signatures and witnesses. Confirm whether remote online notarization (RON) is acceptable.
How can an authorization be revoked effectively?
Revoke in writing, sign as an authorized officer, and deliver notice to all relying parties; record the revocation date. Where possible obtain written acknowledgements and update internal records to prevent continued reliance.
What supporting documents should accompany the letter?
Common attachments include a certified corporate resolution or minutes, EIN verification (IRS CP 575), a copy of the signatory's government ID, and any required power of attorney. Including these reduces the chance of refusal by banks or vendors.
Do state rules change notarization or witness needs?
Yes. States differ on witness counts, notarization, and RON recognition. New York uses ESRA rather than UETA and some states require extra witness or notary steps for real‑estate related documents. Check state statutes or counsel when unsure.
How long must I retain this authorization letter?
Retain for at least three years after revocation for routine business documentation; retain six years when tax or HIPAA records are implicated (IRC §6501(a); 45 CFR §164.530(j)). Follow industry or state-specific retention requirements if longer.

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