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#1986950 - 01/07/15 05:47 PM Nonnegotiable CD Redemption
terpsfan Offline
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Joined: Feb 2007
Posts: 2,058
Are CDs clearly state that they are nonnegotiable and nontransferable but there is a statement in the terms that the certificate must be presented to close. I don’t think an indemnity bond is needed since the CD is not a negotiable instrument but what should we do when the customer lost the piece of paper?

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#1986952 - 01/07/15 05:48 PM Re: Nonnegotiable CD Redemption terpsfan
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
What ever you want to do. You are the one that put this silly term in the agreement smile You are correct that there is nothing to indemnify.
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#1987000 - 01/07/15 07:00 PM Re: Nonnegotiable CD Redemption terpsfan
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
I've seen similar statements in the terms of non-negotiable CDs at more than a few institutions. Almost invariably, the language is vestigial, left over from the days when the institution was issuing negotiable CDs, and no one really understood that it wasn't needed any longer.
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