Quote: I have looking up some information for a friend. I'm trying to figure out who has the authority to endorse notes etc. for a business. I may be getting a little to deep here, but I'm thinking that if you aren't an officer, then you shouldn't be endorsing notes. Does that make sense?
No, your premise does not make sense.
It is quite common for corporations and particularly large corporations to delegate indorsement of negotiable instruments to a fairly low level employee rather than a senior employee, although sometimes this employee will be given a title as an officer.
You are thinking about the problem incorrectly.
Think about a large enterprise which is either selling goods or services and accepting payment by check through the mail. This could be a mail order retailer or your electric utility.
Do you really think that as each and every check for $25 or $50 comes in that these checks are taken up to executive suites for individual indorsement?
Of course not!
Handling of payments, whether by cash or check is typically a treasury or cashier's function. By contrast, accounting for the payment is an accounting function. In an enterprise with strong internal control, these functions will be properly segregated.
Cash and checks would be handled by a teller, cashier or assistant treasurer.
The indorsements would be affixed by using a pre-signed rubber stamp with either the name of the person affixing the indorsement OR the officer who has authorized the indorsement and deposit of the items and also authorized the clerical level cashier employee to affix the indorsement, etc.
These employees would then prepare a deposit to include all of the day's receipts.
For larger enterprises, this sort of cashier / treasury function is often subcontracted to a commercial bank running a so-called lockbox service. Payments are mailed directly to a post office box under the control of a commercial bank on behalf of the institutional client. The bank picks up the mail and then processes each incoming check, adding the indorsement for the customer and depositing the check into the customer's account.
One or more bank employees would sometimes be appointed as assistant treasurers, etc., of the customer for the express purposes of indorsing and depositing the checks in that bank. The bank employees perform this service on a contract basis within the secure transactional accounting spaces of the bank. Using bank lockbox services is usually far cheaper than using in house employees for the processing of incoming checks and preparation of deposits and gets the money into the account faster, as well.
In a very small concern, an officer or principal might attend to the handling of negotiable instruments, but within a larger enterprise this responsibility would be delegated to a clerical level employee working in a secure area segregated from the accounting function.