If you are a signatory on a non-profit /business checking account, is it safe fromyour personal debt?
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If you are a signatory on a non-profit /business checking account, is it safe fromyour personal debt?
Asked on January 19, 2012 under Business Law, California
Answers:
Joseph Gasparrini
Answered 12 years ago | Contributor
Based on your question, I assume that you have some type of management role with a non-profit organization, and you have signing authority on a checking account of the non-profit. The answer to this type of question - involving the rights of a creditor to attach or execute on a particular bank account - depends on the manner in which the account is held. If the non-profit is a properly organized limited liability entity under applicable state law (meaning a corporation or a limited liability company) an if title to the account is held in the name of the entity (not in the name of its officers or any other individuals such as yourself), then your creditors would not have a right to attach or execute upon money in the bank account of the non-profit organization merely on account of the fact that you are a signatory on that account.
Joseph Gasparrini
Answered 12 years ago | Contributor
Based on your question, I assume that you have some type of management role with a non-profit organization, and you have signing authority on a checking account of the non-profit. The answer to this type of question - involving the rights of a credtor to attach or execute on a particular bank account - depends on the manner in which the account is held. If the non-profit is a properly organized limited liability entity under applicable state law (meaning a corporation or a limited liability company) an if title to the account is held in the name of the entity (not in the name of its officers or any other individuals such as yourself), then your creditors would not have a right to attach or execute upon the money in the non-profit's checking account.
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