• The banker must be careful to ensure there is no misappropriation.
He should not permit transfers to the personal accounts of executors/
• If an executor/ administrator dies and he is one of the joint
signatories of an account, cheques issued should not be dishonored
because his powers are vested in the surviving executors/
• Bankers cannot exercise their right of set off of the deceased’s debit
balance against the creditor balance in the executor’s personal
• If the executor requires a loan to make payments before receipt of
the probate, the advances are made on the personal security of the
• After probate is granted, the executor may pledge specific assets to
obtain an overdraft unless the will specifically forbids it.
• If a loan is given all the executors should sign the documents.
Power of Attorney Holder
• A customer may give another his power of attorney to operate his
• It is a general notice and an authority. It is different from an ordinary
mandate to operate a bank account.
• The power of attorney holder is an agent of the account holder and
acts in his name.
• This may be special or specific (to operate the bank account or other
specific powers like the sale of property) or general (which may give
the holder authority to act on the customer’s behalf for many activities
• The power of attorney should be stamped and registered with the
Registrar of Documents or attested by a notary public.
• It must be in force at the time the bank account is operated.
• The attorney holder must be acting within the scope of authority
given to him.
• The power of attorney holder must be properly identified and his
address should be verified.
• As far as possible account the principal should sign the account
opening form. If the power of attorney permits the holder to open
accounts he may do so. However, confirmation from the principal
should be obtained before actual operation.
• The account should b