a) The account must be opened in the association's name. The name must be registered by the registrar of societies. Therefore an original and a certified copy of the society's certificate of name registration must be produced.
b) The bank requires a copy of the association's constitution to peruse and for record purposes. The account mandate should be in conformity therewith.
c) Account mandate should confirm that at a meeting of the association it was resolved that an account be opened and cheques signed by the parties authorized. The mandate requires certification by the chairperson and secretary.
d) Borrowing should not be allowed unless rules exist that allow borrowing. These rules must be perused to ascertain any borrowing formalities and restrictions e.g., the rules may provide that any borrowing can only be undertaken if members
resolve to do so in a general meeting. A copy of the resolution is required.
e) It is always advisable to take security for any borrowing as on default it may
prove difficult or legally impossible to recover moneys from individual members.
NatalieR answered the question on February 22, 2022 at 08:06
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