Question

Burt has gone to a commercial bank to negotiate a loan for the LLC in which he is a member. He tells the bank that he is authorized to act on behalf of and to bind the company. What is the best way for the bank to verify whether Burt does in fact have the authority he claims?
a. Get him to sign a written statement.
b. Call another member of the LLC for confirmation.
c. Check the articles of organization.
d. Nothing need be done because all LLC members have the right to bind the company, as do general partners.

Answer 1

c. Check the articles of organization.