diff --git a/src/test/app/Sponsor_test.cpp b/src/test/app/Sponsor_test.cpp
index 6815f266f4..e0c095b263 100644
--- a/src/test/app/Sponsor_test.cpp
+++ b/src/test/app/Sponsor_test.cpp
@@ -118,19 +118,12 @@ public:
         env(sponsor::set(sponsor, sponsor, 0), ter(temMALFORMED));
 
         // Invalid feeAmount
-        env(sponsor::set_fee(
-                sponsor, alice, tfSponsorshipClearRequireSignForFee, XRP(1)),
-            ter(temMALFORMED));
-
         for (auto amt : {XRP(-1), XRP(0), USD(1)})
         {
             env(sponsor::set_fee(sponsor, alice, 0, amt), ter(temBAD_AMOUNT));
         }
 
         // Invalid reserveCount
-        env(sponsor::set_reserve(
-                sponsor, alice, tfSponsorshipClearRequireSignForReserve, 1),
-            ter(temMALFORMED));
         env(sponsor::set_reserve(sponsor, alice, 0, 0), ter(temMALFORMED));
 
         // Invalid Delete operation
@@ -686,6 +679,38 @@ public:
                     sponsorFeeBalance(sponsor, alice) == sponsorFee - feeAmt);
             }
         }
+
+        // test lsfSponsorshipRequireSignForFee
+        {
+            Env env{*this, testable_amendments()};
+            Account const alice("alice");
+            Account const bob("bob");
+            Account const sponsor("sponsor");
+            env.fund(XRP(10000), alice, bob, sponsor);
+            env.close();
+
+            // set flag
+            env(sponsor::set_fee(
+                sponsor, alice, tfSponsorshipSetRequireSignForFee, XRP(10)));
+            env.close();
+
+            env(pay(alice, bob, XRP(100)),
+                fee(XRP(10)),
+                sponsor::as(sponsor, tfSponsorFee),
+                ter(terNO_SPONSORSHIP));
+            env.close();
+
+            // clear flag
+            env(sponsor::set_fee(
+                sponsor, alice, tfSponsorshipClearRequireSignForFee, XRP(10)));
+            env.close();
+
+            env(pay(alice, bob, XRP(100)),
+                fee(XRP(10)),
+                sponsor::as(sponsor, tfSponsorFee),
+                ter(tesSUCCESS));
+            env.close();
+        }
     }
 
     void
@@ -741,6 +766,42 @@ public:
         }
     }
 
+    void
+    testRequireFlag()
+    {
+        testcase("SponsorshipRequireSignForReserve");
+        using namespace test::jtx;
+
+        Env env{*this, testable_amendments()};
+        Account const alice("alice");
+        Account const bob("bob");
+        Account const sponsor("sponsor");
+        env.fund(XRP(10000), alice, bob, sponsor);
+        env.close();
+
+        // set flag
+        env(sponsor::set_reserve(
+            sponsor, alice, tfSponsorshipSetRequireSignForReserve, 10));
+        env.close();
+
+        env(check::create(alice, bob, XRP(100)),
+            fee(XRP(10)),
+            sponsor::as(sponsor, tfSponsorReserve),
+            ter(terNO_SPONSORSHIP));
+        env.close();
+
+        // clear flag
+        env(sponsor::set_reserve(
+            sponsor, alice, tfSponsorshipClearRequireSignForReserve, 1));
+        env.close();
+
+        env(check::create(alice, bob, XRP(100)),
+            fee(XRP(10)),
+            sponsor::as(sponsor, tfSponsorReserve),
+            ter(tesSUCCESS));
+        env.close();
+    }
+
     void
     testCheck()
     {
@@ -1269,6 +1330,7 @@ public:
     void
     testSponsorReserve()
     {
+        testRequireFlag();
         testCheck();
         testOfffer();
         testTicket();
diff --git a/src/xrpld/app/tx/detail/SponsorshipSet.cpp b/src/xrpld/app/tx/detail/SponsorshipSet.cpp
index 2725578984..5724d380f1 100644
--- a/src/xrpld/app/tx/detail/SponsorshipSet.cpp
+++ b/src/xrpld/app/tx/detail/SponsorshipSet.cpp
@@ -82,9 +82,6 @@ SponsorshipSet::preflight(PreflightContext const& ctx)
 
     if (ctx.tx.isFieldPresent(sfFeeAmount))
     {
-        if (ctx.tx.getFlags() & tfSponsorshipClearRequireSignForFee)
-            return temMALFORMED;
-
         auto const feeAmount = ctx.tx.getFieldAmount(sfFeeAmount);
 
         if (!isXRP(feeAmount))
@@ -108,9 +105,6 @@ SponsorshipSet::preflight(PreflightContext const& ctx)
 
     if (ctx.tx.isFieldPresent(sfReserveCount))
     {
-        if (ctx.tx.getFlags() & tfSponsorshipClearRequireSignForReserve)
-            return temMALFORMED;
-
         auto const reserveCount = ctx.tx.getFieldU32(sfReserveCount);
         // TODO: max reserveCount?
         if (reserveCount < 1)
@@ -158,12 +152,13 @@ TER
 SponsorshipSet::doApply()
 {
     auto const sponseeAcc = ctx_.tx[sfSponsee];
-    auto const keylet = keylet::sponsor(account_, sponseeAcc);
 
     auto const sponsorAcc = ctx_.tx.isFieldPresent(sfSponsorAccount)
         ? ctx_.tx.getAccountID(sfSponsorAccount)
         : account_;
 
+    auto const keylet = keylet::sponsor(sponsorAcc, sponseeAcc);
+
     auto const sponsorAccSle = ctx_.view().peek(keylet::account(sponsorAcc));
     if (!sponsorAccSle)
         return tecINTERNAL;
@@ -222,7 +217,6 @@ SponsorshipSet::doApply()
 
         (*newSle)[sfOwner] = sponsorAcc;
         (*newSle)[sfSponsee] = sponseeAcc;
-        (*newSle)[sfFlags] = ctx_.tx.getFlags();
         if (feeAmount)
         {
             (*sponsorAccSle)[sfBalance] -= *feeAmount;
@@ -237,6 +231,15 @@ SponsorshipSet::doApply()
             (*newSle)[sfReserveCount] = *reserveCount;
         }
 
+        auto flags = 0;
+        if (ctx_.tx.isFlag(tfSponsorshipSetRequireSignForFee))
+            flags |= lsfSponsorshipRequireSignForFee;
+
+        if (ctx_.tx.isFlag(tfSponsorshipSetRequireSignForReserve))
+            flags |= lsfSponsorshipRequireSignForReserve;
+
+        (*newSle)[sfFlags] = flags;
+
         auto const sponsorPage = view().dirInsert(
             keylet::ownerDir(sponsorAcc), keylet, describeOwnerDir(sponsorAcc));
         (*newSle)[sfOwnerNode] = *sponsorPage;
diff --git a/src/xrpld/app/tx/detail/Transactor.cpp b/src/xrpld/app/tx/detail/Transactor.cpp
index dd0f6ea9f8..ac6ce1c32b 100644
--- a/src/xrpld/app/tx/detail/Transactor.cpp
+++ b/src/xrpld/app/tx/detail/Transactor.cpp
@@ -259,35 +259,26 @@ Transactor::checkSponsor(ReadView const& view, STTx const& tx)
     auto const sponsorAcc = txSponsor.getAccountID(sfAccount);
     auto const sponseeAcc = tx.getAccountID(sfAccount);
 
-    auto const hasSignature = txSponsor.isFieldPresent(sfTxnSignature) ||
+    auto const hasSponsorSignature = txSponsor.isFieldPresent(sfTxnSignature) ||
         !txSponsor.getFieldVL(sfSigningPubKey).empty() ||
         txSponsor.isFieldPresent(sfSigners);
 
-    auto const sponsorSle = view.read(keylet::sponsor(sponsorAcc, sponseeAcc));
-    if (!hasSignature)
+    if (!hasSponsorSignature)
     {
+        auto const sponsorSle =
+            view.read(keylet::sponsor(sponsorAcc, sponseeAcc));
+
         // pre funded
         if (!sponsorSle)
-            return tecNO_SPONSOR_PERMISSION;
-    }
-    else
-    {
-        // co-signed
-        if (!sponsorSle)
-            return tesSUCCESS;
+            return terNO_SPONSORSHIP;
 
         if (txSponsor.isFlag(tfSponsorFee) &&
             sponsorSle->isFlag(lsfSponsorshipRequireSignForFee))
-        {
-            if (!hasSignature)
-                return tecNO_SPONSOR_PERMISSION;
-        }
+            return terNO_SPONSORSHIP;
+
         if (txSponsor.isFlag(tfSponsorReserve) &&
             sponsorSle->isFlag(lsfSponsorshipRequireSignForReserve))
-        {
-            if (!hasSignature)
-                return tecNO_SPONSOR_PERMISSION;
-        }
+            return terNO_SPONSORSHIP;
     }
 
     return tesSUCCESS;