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#1937907 - 07/03/14 08:03 PM Honoring Acquired Bank's CD Early W/D penalties
tazman in FL Offline
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Joined: Dec 2005
Posts: 20
Orlando
IF we disclose (30 days in advance) to newly acquired bank's CD product customers what new CD product they will be changed to at conversion, and disclose the new product terms and conditions, would we need to honor the existing early withdrawal penalties until such time their current CD matures? This is not a failed bank acquisition.

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Deposits and Payments
#1937929 - 07/03/14 08:41 PM Re: Honoring Acquired Bank's CD Early W/D penalties tazman in FL
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
So, during that 30 days after you give them notice of the new, presumably higher, penalties are you going to let them make withdrawals:
* and incur the originally disclosed penalty or
* penalty free?

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#1937930 - 07/03/14 08:41 PM Re: Honoring Acquired Bank's CD Early W/D penalties tazman in FL
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,400
Galveston, TX
You cannot change the terms of a CD midstream. You could only change them at renewal.
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