Common use of Agency Designation Clause in Contracts

Agency Designation. An agency designation is an instruction to the Credit Union that the account owner has authorized another person to make transactions as agent for the account owner regarding the accounts designated. The customary method used in appointing an agent is a Power of Attorney. An agent has no ownership interest in the account or Credit Union voting rights. The Credit Union has no duty to inquire of the use or purpose of any transaction by the agent or ensure that the acts of the agent are for your benefit. An agency designation is acceptable for designated transactions on single party accounts. As to multiple party accounts, in order for an agent to handle designated transactions, the agent must be appointed by all owners. The Credit Union has the right to review and approve any form of Power of Attorney and may restrict any withdrawals or transfers on your accounts. You agree not to hold the Credit Union responsible for any loss or damage you may incur as a result of the Credit Union following instructions given by an agent acting under a valid Power of Attorney.