Is an electronic statement legally binding?

Yes—electronic signatures meet legal equivalence under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted; ensure intent, consent, attribution, and record retention are satisfied.

When is notarization required?

Notarization depends on recipient and state law; deeds and some bank resolutions often require a notary. New York and Florida have specific witness/notary rules—confirm with the recipient or state statutes.

How do I update an existing statement?

Issue a new dated statement signed by authorized officers and distribute it to banks and counterparties; retain the superseded copy for records and note the replacement date.

How can an authority be revoked?

Revoke by issuing a signed, dated revocation statement and notifying affected parties; retain proof of delivery and update internal records promptly.

What if a third party won’t accept the statement?

Request specific acceptance requirements from the third party; common requests include a notarized copy, board resolution, or certified corporate documents.

How long must I keep signed statements?

Retain according to applicable rules: at least 3 years for tax-related records (IRC §6501(a)), 6 years for HIPAA matters (45 CFR §164.530(j)), and longer where state law requires it.

Electronic Signature
Templates
Miscellaneous
Business Statement of Authorities

Business Statement of Authorities

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

BUSINESS STATEMENT OF AUTHORITIES

Business Name: Entity Type: Corporation Limited Liability Company Partnership

Principal Place of Business

Jurisdiction of Formation: Date of Formation:

Whereas Recitals

WHEREAS, the business identified above (the "Entity") is validly organized and in good standing under the laws of the jurisdiction indicated above; and

WHEREAS, the Entity desires to set forth the names, titles and specific authorities of those persons empowered to act on behalf of the Entity with respect to financial, contractual, operational and representative matters, and to provide a formal statement for banks, counterparties, and other third parties relying on such authorities; and

WHEREAS, any prior statements of authority previously executed by the Entity are hereby superseded to the extent inconsistent with this Statement, except as expressly preserved in Section 7 below.

Statement of Authorities — Scope

The Entity hereby designates the following individuals and grants to each the specific authorities described. The scope below identifies the categories of acts each designated person is authorized to perform on behalf of the Entity.

Scope Summary

Authorized Individuals

Authorized Person 1

Full Legal Name Title Specific Authorities

Effective Date: Expiration Date (if any):

Authorized Person 2

Full Legal Name Title Specific Authorities

Effective Date: Expiration Date (if any):

Authorized Person 3 (optional)

Full Legal Name Title Specific Authorities

Effective Date: Expiration Date (if any):

Limitations & Delegations

Limitations on Authority

Delegation: The persons named above may not delegate any granted authority except as expressly permitted by the Entity's governing documents or as recorded in a separate written delegation executed by an officer of the Entity.

Payment Terms (If Applicable)

Compensation for services or expenses incidental to the exercise of authority, if any, shall be paid as follows.

Amount Authorized for Reimbursement / Fees Payment Schedule Late Fee / Interest on Overdue Amounts

Term and Termination

This Statement is effective as of: and shall continue in force until unless earlier revoked or superseded in writing.

Notice Period for Revocation or Amendment

Confidentiality

Each party with access to non-public corporate, financial or operational information disclosed in connection with the exercise of the authorities set forth herein shall hold such information in strict confidence and shall not disclose it to any third party except as required by law or with the prior written consent of the Entity. The duty of confidentiality shall survive termination of this Statement for a period of two (2) years.

Governing Law

This Statement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflict of laws principles.

Entire Agreement

This Statement, together with any attachments or schedules executed contemporaneously, constitutes the entire agreement of the Entity with respect to the designation of authorities and supersedes all prior written statements of authority to the extent they are inconsistent herewith.

Certification

The undersigned certifies that the information contained in this Statement is true and correct, that the undersigned is authorized by the Entity to execute this Statement, and that the authorities granted herein have been conferred in accordance with the Entity's governing documents.

Additional Remarks

Entity Representative:

By:

Title:

Date:

Acknowledging Party:

By:

Title:

Date:

What a Business Statement of Authorities Is and When It’s Used

A Business Statement of Authorities is a formal record that identifies an organization’s authorized signatories, their roles, and the scope of actions each person may lawfully take on behalf of the business. It typically lists officers, managers, or designated agents and specifies signature authority for contracts, financial transactions, filings, and other binding commitments. Organizations use this document internally and externally to confirm who can sign agreements, open accounts, or execute documents. The statement helps third parties rely on signature authority and supports corporate governance, auditability, and risk management.

Why a Clear Statement of Authorities Matters

A concise Business Statement of Authorities reduces transaction friction, clarifies internal approval limits, and provides third parties with a reliable document to accept or verify signatures. It strengthens audit trails and helps prevent unauthorized obligations.

Who Typically Prepares and Relies on This Statement

Organizations use a Statement of Authorities to make signatory roles transparent for internal teams and external counterparties.

Corporate legal and compliance teams: maintain official lists of authorized signers and approval thresholds for contracts and financial operations.
Banks and financial institutions: require verification of signatory authority to open accounts, issue loans, or process transfers.
Vendors and counterparties: request a current statement to accept executed agreements and reduce acceptance risk.

Maintain and share the statement with stakeholders who need to verify authority; update it promptly after officer changes.

Common Roles and Document Examples

Chief Executive Officer

The CEO is commonly listed with broad signing authority for corporate contracts and strategic agreements; the statement should describe any monetary limits or required co-signatures for large transactions.

Controller / Treasurer

Finance officers often have authority limited to banking, payroll, tax filings, and checks; the statement clarifies thresholds that trigger board approval or secondary signers.

Essential Fields to Include

Entity Name: Full legal entity name

Document Date: Effective date MM/DD/YYYY

Signer Name: Full legal name of signatory

Title / Role: Official job title

Scope of Authority: Actions and monetary limits

Signature Block: Signature, printed name, and date

Step-by-Step: Creating a Business Statement of Authorities

Follow a clear sequence to create an accurate, accepted statement and reduce rework when counterparties request verification.

01

1. Review corporate records: Confirm bylaws and board resolutions
02

2. List authorized roles: Include titles and full names
03

3. Define authority limits: Specify dollar and contract limits
04

4. Sign and date: Obtain required executive signatures

Configuring an Online Workflow for the Statement

Set up a repeatable digital workflow so the statement can be issued, updated, and shared with minimal friction.

Document Template Name	Business Statement of Authorities
Fields to Add	Name \| Title \| Scope \| Date \| Signature
Signer Order	Board chair then CEO
Authentication Level	Email link or SMS code
Storage Location	Encrypted records repository

Typical Routing and Filing Path

Understand common destinations so recipients accept the statement without extra verification.

Internal Filing: Corporate minute book or records
Bank Submission: Compliance and account onboarding
Vendor Acceptance: Counterparty contract teams
Regulatory Audit: Retained for inspection and proof

Digital Signing and Technical Requirements

Choose a platform that supports secure eSigning, audit trails, and the authentication level your recipients require.

Authentication: Email, SMS, KBA options
Audit Trail: IP, timestamp, and event log
File Formats: PDF and DOCX supported

Use integrations (CRM, document storage) and record retention settings to preserve signed statements and meet compliance obligations.

eSignature Pricing Snapshot for Managing the Statement

Platform costs and feature availability affect how you distribute and update a Business Statement of Authorities; compare plans and compliance options before selecting a vendor.

	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	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Varies by plan	Varies by plan	Varies by plan	Varies by plan

Risks and Legal Consequences of Errors

Unauthorized Contracts: May be unenforceable or void

Banking Delays: Account actions may be rejected

Tax Consequences: Incorrect TINs can trigger withholding

Regulatory Risk: Noncompliance during audits

Fraud Exposure: Weak controls increase fraud risk

Liability for Officers: Potential personal exposure in limited cases

Common Preparation Mistakes to Avoid

Listing informal job titles rather than official corporate titles, which creates confusion during bank or vendor verification.
Failing to state monetary limits or required co‑signatures, allowing unauthorized commitments to be inadvertently accepted.
Using initials or abbreviated names in the signature block, causing identity mismatches with government IDs.
Not updating the statement promptly after officer changes, leaving stale authorities in circulation.

Practical Tips for Accurate and Efficient Statements

Adopt consistent templates and update procedures to reduce review cycles and support downstream reliance.

Use Board Resolutions

Attach or reference the board resolution or minutes that authorize listed signatories; this creates a primary-source link and supports acceptance by banks and counterparties.

Limit and Describe Authority

Specify monetary thresholds, contract types, and whether authority is exclusive or requires countersignature; detailed scopes reduce disputes and limit operational risk.

Version Control and Distribution

Maintain a single authoritative template, track version dates, and distribute signed copies to banks and key vendors to avoid reliance on outdated statements.

Use Secure eSignature and Audit Trails

Capture signer authentication method, IP address, and timestamp; retain a tamper-evident PDF and an audit record for compliance and dispute resolution.

Real-World Examples of Use

Entities across industries rely on statements to accelerate onboarding, banking, and contract execution without in-person verification.

Martin Properties — Founder

Tim Martin used online statements to process lease and closing approvals quickly.

Platform-enabled remote signing reduced turnaround constraints on site closings.
The firm retained an auditable record and avoided in-person signature requirements while ensuring compliance across mobile and desktop workflows.

Optica Ventures — COO

Brian Fitzgibbons centralized signatory lists for investor and vendor agreements.

Central records reduced repeated verification requests.
With precise authority scopes attached to contracts, the company streamlined counterparty onboarding and reduced legal review cycles for routine agreements.

Frequently Asked Questions and Troubleshooting

Answers to common questions about validity, notarization, updates, and revocation for Business Statements of Authorities.

Need help? Contact support

Is an electronic statement legally binding?
Yes—electronic signatures meet legal equivalence under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted; ensure intent, consent, attribution, and record retention are satisfied.
When is notarization required?
Notarization depends on recipient and state law; deeds and some bank resolutions often require a notary. New York and Florida have specific witness/notary rules—confirm with the recipient or state statutes.
How do I update an existing statement?
Issue a new dated statement signed by authorized officers and distribute it to banks and counterparties; retain the superseded copy for records and note the replacement date.
How can an authority be revoked?
Revoke by issuing a signed, dated revocation statement and notifying affected parties; retain proof of delivery and update internal records promptly.
What if a third party won’t accept the statement?
Request specific acceptance requirements from the third party; common requests include a notarized copy, board resolution, or certified corporate documents.
How long must I keep signed statements?
Retain according to applicable rules: at least 3 years for tax-related records (IRC §6501(a)), 6 years for HIPAA matters (45 CFR §164.530(j)), and longer where state law requires it.

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