Borrowing Resolutions – Corp

Description

If the borrower or signer on a Promissory Note is corporation, the lender must obtain a borrowing resolution from the Board of Directors of the corporation to prevent the corporation from claiming that the person who signed the Promissory Note or other loan documents did not have the authority to sign for the corporation and therefore the corporation is not obligated. It is prudent business practice to obtain a borrowing resolution. Commercial lenders almost always require a borrowing resolution as a condition to making a loan.

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