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I have a question about transferring bank accounts from one…

Customer Question
I have a question...

I have a question about transferring bank accounts from one person to another in a non profit buisness

Lawyer's Assistant: Can you tell me where the nonprofit is registered?

Michigan. But it is being transferred to PA. I founded it and my name is ***** ***** but I am stepping back and someone in another state is taking over. In regard to the Bank account, I have been told conflicting info about whether to close it and reopen it there. or to try to transfer signatures.

Lawyer's Assistant: Has anything been officially filed? If so, what?

Nothing has been filed.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

This is not a particularly amicable split between myself and the NPO.

Submitted: 8 months ago.Category: Business Law
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Customer reply replied 8 months ago
I am the founder and current ED of a NPO in MIchigan. I am resigning from my position. The BoD want to continue on the work but transfer to PA. As of now, only my name is ***** ***** Bank account and many other documents. I would prefer to close the bank account and have the reopen one in PA, but we're disagreeing on this. If I close the account, is there any legal repercussion? I plan to just send them a check for the remaining funds in the account.
Customer reply replied 8 months ago
I have spoken with a Michigan lawyer and Bank associates who told me to close the account because my name will always remain on it as I opened the account. They said my name cannot be removed. However, the PA she was told to keep the account open. We're getting conflicting information. I am worried about any legal repercussions if they mismanage money and/or do something incorrectly, I do not want to be held liable.
Answered in 14 hours by:
11/18/2017
Business Lawyer: Richard - Bizlaw, Attorney replied 8 months ago
Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,834
Experience: 30 years of corporate, litigation and international law
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Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

The simple solution is to have the NPO open a new account in PA where they want to operate. Wire the funds from the account in Michigan and close the account. Your name is ***** ***** removed from the bank records, and the NPO can operate from PA without missing a beat.

If I have answered all your questions, please highly rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

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Customer reply replied 8 months ago
Are there any legal repercussions for closing the account and just sending them a check?They were told they cannot open the new account because the EIN is currently tied to this account.
Business Lawyer: Richard - Bizlaw, Attorney replied 8 months ago

There is no restriction on a non profit having more than one account so that excuse makes no sense. They can walk into any bank and open an account. The reason the check is not the best approach is because the check does not provide immediately available funds. A wire transfer provides the funds immediately. Since it is obvious you do not trust one another the approach I gave you is the simplest and can be done in a day.

If I have answered all your questions, please highly rate my answer as that is how I receive credit. If you have more questions, please let me know. If the answer was especially helpful you can provide a bonus.

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