Legal Question in Business Law in California

Restraint of bank account

I open two association bank accounts with bank of america in the name of the association, maximizer and checking accounts, with myself as the president who, supposely based on the master agreement signed with the bank, has the sole control/access of the fund in those accounts. I open the accounts with a huge sum of my personal retirement money thinking that it would be safe since I have the ultimate control of the accounts. For no reason at all given to me, those accounts are being restrained by the bank and yet giving me a hard time; I cannot transfer funds between the two accounts nor write a check to take the money out. Can Bank of America do that legally? Please help.


Asked on 12/02/98, 2:20 pm

3 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Restraint of bank account

As Mr. Koury has said, you should find out why the bank is doing this. You also probably should not be mixing your personal retirement money with the association's accounts. If you aren't careful to keep your affairs and the association's separate, you could become personally liable for any judgments against the association. Such mingling of funds might also have tax consequences, and could cause a variety of other problems. For example, if the association is unable to pay its bills due to your mingling of funds, you might be liable to the association. In the future, you would be wise to keep your finances strictly separated from the association's.

Edward Hoffman

Law Offices of Edward A. Hoffman

11620 Wilshire Boulevard, #340


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Answered on 1/15/99, 2:40 pm
John Hayes The John Hayes Law Offices

Re: Restraint of bank account

Mr. Koury and Mr. Hoffman are both correct, however

that does not solve the problem at hand. I specialize

in business and contract law. I would be happy to

give you a free consultation and discuss various

courses of action. Please contact my office at your

earliest convenience at 805-546-9909 or you can email

me with your phone number and a convenient time to

reach you so that we can discuss your case in more

detail. I am hesistant to give you any advise on

what you should do without any additional information.

I am based in San Luis Obispo, but I practice law

throughout the state.

I look forward to hearing from you.

Sincerely,

John Hayes, Esq.

John Hayes

The John Hayes Law Offices

P.O. Box 3003


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Answered on 1/18/99, 1:20 am
Ken Koury Kenneth P. Koury, Esq.

Re: Restraint of bank account

You need to ask the bank why the money is being held.

Ken Koury

Kenneth P. Koury, Esq.

5807 Topanga Cyn Blvd., Suite G-201


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Answered on 1/15/99, 2:47 am


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