Month: September 2017

Verifying the Identity of a Foreign Signatory to a Business Account

Issue/Inquiry

A business entity wants to open a deposit account with the Bank, and provides a certificate of formation along with the EIN. The individual who will be the authorized signer is not a U.S. citizen and is only able to provide an IRS Individual Taxpayer Identification Number (“ITIN”) for himself, a Maryland driver’s license, and Mexican passport. The Bank believes that possession of an ITIN does not authorize a non-citizen to work in the U.S., and that an individual would need a work visa or SSN that was issued for “work purposes only”. How can the Bank verify that a non-resident alien is here in the United States lawfully?

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Flood Insurance for Fixtures and when Contents are Owned by a Tenant

Issue/Inquiry

The Bank has made a loan to two business entities: Borrower A, who owns the commercial building securing the loan, and Borrower B, who is a tenant of the building and operates an auto repair business. Both borrowers have pledged business assets as additional collateral. Borrower A’s business assets are only the fixtures of the building, while Borrower B’s business assets include equipment and inventory in the building. The building is in a Special Flood Hazard Area (“SFHA”). Is flood insurance contents coverage required for the business assets of both borrowers?

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