A corporate resolution that authorizes borrowing from a designated bank helps establish the relationship that members (LLC) or Board of Directors (Corporation) have with the company's banking needs.
Like a corporate resolution authorizing borrowing on a line of credit, a meeting and vote are conducted among members or Board of Directors. This acknowledges the company is allowed to go into debt after borrowing from a designated bank.
If the vote does not pass, a corporate resolution can't be established to borrow from a bank. As a result, the company will be unable to borrow any money.
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RESOLVED, that the MEMBER/DIRECTOR TITLE of the Corporation is authorized, for the account of this Corporation, and on such terms and conditions as he/she/they may deem proper, to borrow from LENDER (Financial Institution) sums of money; and to sign, execute, and endorse all such documents as may be required by said bank to evidence such indebtedness; to discount or rediscount with said bank any of the bills receivable owned by this Corporation; to apply for and obtain from said bank letters of credit, and to execute agreements to secure said bank in connection therewith, to pledge and/or mortgage any moneys on deposit or any moneys otherwise in the possession of said band, and/or any bonds, stocks, receivables, or other property of this Corporation, to secure the payment of any indebtedness, liability, or obligation of this Corporation to said bank whether now due or to become due and whether existing or hereafter incurred, to withdraw and/or substitute any property held at any time by said bank as collateral, and to sign and execute trust receipts for the withdrawal of same when required; and generally to do and perform all acts and sign all agreements, obligations, pledges, and/or other instruments necessary or required by said bank.
The undersigned hereby certifies that he/she is the duly elected and qualified Secretary and the custodian of the books and records and seal of COMPANY NAME ,a corporation duly formed pursuant to the laws of the state of YOUR STATE and that the foregoing is a true record of a resolution duly adopted at a meeting of the DIRECTORS/MEMBERS and that said meeting was held in accordance with state law and the Bylaws of the above-named Corporation on MEETING DATE ,and that said resolution is now in full force and effect without modification or rescission.
IN WITNESS WHEREOF, I have executed my name as Secretary and have hereunto affixed the corporate seal of the above-named Corporation this DAY OF THE WEEK , CURRENT MONTH of CURRENT YEAR .
SECRETARY NAME , Secretary