from what i understand the Patriot Act says a bank must verify information before opening an account.-- Id SS card EIN number for business. What if the business has been suspended by the Secretary of State..? Is the bank allowed to still open the account even if it is suspended ? A business under suspension can not to do business of any kind, so I just don't understand how a bank can open an account for said business and if this is legal under Patriot Act.
HOA has been stolen by an individual who has opened a bank account under associations name. She has obtained checks, atm card, credit cards and much more. I would like to shut down bank account but have been unable to since 2011. This is a 55+ community and I'm afraid we as homeowners will eventually lose are homes due to the damage/debts she is causing. I live in Riverside County CA, if you can stop this lady please call me with a quote to retain you. Thank you
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You need to provide additional information to clarify your question. Generally, you are correct that a business entity (e.g. corporation, LLC, LLP) that has lost its good standing with the California Secretary of State loses its privilege to conduct business in California. Be sure to consult your own attorney to protect your legal rights.
As a general rule you are correct. Most banks will verify the "goodstanding" (non-suspension) of a corporation prior to opening an account.
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
The bank will likely not check into whether your entity has been suspended. They will only verify the info that they are required to. If you operate the business, the principals can be held accountable not the bank.
I am not certain how the Patriot Act matters here, but if you have some concerns that are not clear from your posting you should certainly consult a lawyer in private.
Most of us here, including myself, offer a free phone consult.
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