Community Bankers' Advisor

Jan-Feb2007  

Page 1


Welcome to the on-line
Jan-Feb2007 issue of the
Community Bankers' Advisor
. . . . . . . . . . .

The Advisor is prepared by attorneys at Olson & Burns P.C. to provide information pertaining to legal developments affecting the field of banking. In order to accomplish this objective, we welcome any comments our readers have regarding the content and format of this publication. Please address your comments to:

Community Bankers' Advisor
c/o Olson & Burns P.C.
PO Box 1180
Minot, ND 58702-1180

olsonpc@minotlaw.com

Also, visit our web site at:
www.minotlaw.com

The attorneys at Olson & Burns represent a wide range of clients in the financial and commercial areas. Our attorneys represent more than 30 banks throughout North Dakota.

Independent Community Banks of North Dakota

January/February, 2007

YOU ARE ASKING . . . .

Q: We have a good business customer who has changed the business name, Employer Identification Number (EIN), and has changed from a sole proprietorship to a Limited Liability Company. Is it better to just close the current account and open a new account with the new information? Or, should we just change the current account information to reflect the changes?

A: This is determined by what sort of established procedures you use. However, most institutions require a fresh start for new entities. We recommend opening a new account. Because the old and new companies are really two totally separate entities, keeping the old account but adding all new information would be like changing the owner of a consumer account from Bill Jones to Steve Smith.

Q:



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