Memorandum
TO:
FROM:
DATE:
SUBJECT: Signature for Power of Attorney
I foresee a potential problem with our present policy with regard to proper acceptance of a signature under a power of attorney. According to law, the power-of-attorney procedure can be used by an absentee to conclude contractual obligations. Such procedure, however, always raises the possibility of fraud and could place us under a problem of collectibility on a loan under guarantee.
Therefore, I would suggest we amend present company policy with regard to accepting signatures under power of attorney. I’d recommend we handle all power-of-attorney signatures on a case-by-case basis at the vice-presidential level. This new policy should go into effect immediately.
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