I know this question is probably elementary, but I haven't done this for many years and need a brush-up on this stuff. Currently we issue CD's with 'formal' paper certificates and our CEO has asked the New Accounts department to look into 'no certificate' CD's. The VP in New Accounts is freaking out because she has never done anything like this before. This is what currently spits out of the printer for a single owner CD - 1 original CD, 2 copies of the original, 2 copies of the signature card, 1 TIS, 1 privacy notice, 2 copies of the penalty notice, 3 copies of the W-9 (as needed.) Is this the norm? It seems rather excessive... Would 'no certificate' CD's lighten this load any? The NA dept seems to think that it would be more of a load to keep up with for audit purposes. Any help/thoughts would be appreciated.

The term you are looking for is "book entry" time deposit, one where there is no certificate. The purchaser receives only a receipt and the required disclosures. When the time deposit matures the owner is not required to present any "certificate," only evidence of identity.

I can't speak to the volume of forms being spat out, but suggest you sit down with each and say, "Who needs this and what for?" I could answer the questions for some of them, but the others may be unique to your bank.

We love book entry (aka "paperless") CDs. Eliminates the hassle of trying to get the original CD back in the bank's possession everytime a change is made or account closed. Also, our JHA system supports them well with special fields to document the CD is paperless.

If you convert, make sure you staff knows how to differentiate between the "real" and that "paperless" CDs when closing an account. You ALWAYS have to get the real CDs back in your possession or obtain an affidavit of lost instrument (a permanent retention document in most states).

This is the perfect subject I was searching for!

We have gone to "paperless" CODs but have a signature card that we require the customer to sign and we are trying to do away with that. What if any documents do you have the customer sign if there is no "certificate" being issued just a receipt for the customer?

bump

I recommend utilizing a signature card for all certificates, book entry and "real". You need the customer's signed acknowledgement of account ownership and rights at death.

Thanks Brenda