By Donya Parrish, MCU VP- Risk Management

Recently, the same question has been asked by credit unions across the state, so a summary of some business account basics might be helpful and timely. The question — Can we turn over funds from the personal account of an individual who is a signer on a business account when we get a levy on the business?

The following business account basics might help in reviewing your practice:

• Only one owner of the account is allowed — the entity (business) itself.
• Anyone associated with the account in a signing or other capacity is a fiduciary (not an owner) of the funds.
• If you are using forms intended for personal accounts that have verbiage about joint owners or payable on death beneficiaries, you risk confusion and violating M.C.A. Title 72, Chapter 6, Part 2 (which does not allow joint owners or POD on business accounts).

When levies come in, they are tied to a judgment somewhere and must match the name and tax ID of the party that owns the account. That does not include someone who manages those funds in a fiduciary role.

More information can be found in the InfoSight Business Accounts channel. Oh, and the answer is the same if the levy is for an individual and you want to go after business funds — you cannot mix individual and entity levy funds unless the levy specifies both on it.