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Authority to Control Church Bank Accounts

Changes must follow procedural requirements.

First Born Church of the Living God v. Bank South, 472 S.E.2d 469 (Ga. App. 1996).

Background. Is a bank required to honor a change in signature authority on church accounts if the change failed to comply with the church's constitution? That was the issue facing a Georgia court in a recent case. A church's bank accounts stated that all checks and withdrawals had to be approved by the senior pastor. A dispute arose in the church, and the congregation was divided over the issue of whether or not to retain their pastor. The church board held an "emergency meeting" at which it removed the pastor and replaced him with another pastor. The board also amended its bank accounts to require that all checks and withdrawals be approved by the new pastor. The former pastor claimed that the board's actions were invalid because they violated the church constitution. The constitution required that the senior ...

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Posted:
  • November 1, 1997

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