Safe Deposit Box Ownership Problem
by Mary Beth Guard, BOL Guru
Question: I have a dilemma concerning ownership of a safe deposit box. In my example I will use first names only just for expediency. I have a safe deposit box that was opened in a year and a half ago in the name of Shirley and Laverne, let's say. Shirley was the person who came in and she is the only person to sign the signature card. She signed the card as both an owner and a deputy (why, I don't know). On our system, the box was entered with Laverne being the owner. However, Laverne never signed the rental agreement. Since the time the box was rented, our records show only one entry into the box, and that was last week. On Wednesday, Shirley signed to get in the box at 11:00 a.m. As it turns out, Laverne died that day at 11:00. We were not directly notified of Laverne's death. We found out two days later in casual conversation with someone going to her funeral. I see so many things wrong I can't even verbalize what all they are, but my question to you is "How do I treat this box? Who should be considered the owner of the contents?" This is the only relationship our bank had with Laverne.
Answer: I wanted to publish your question because it serves as a great reminder of how screwy customer behavior can sometimes be. Regardless of which area of the bank you're dealing with, signature cards and other contracts completed by the customer should always be reviewed after they are executed - and before keys to a safe deposit box are handed over (or an account number is assigned on a deposit account or proceeds of a loan are disbursed, in other contexts) to ensure they have been properly completed.
Shirley, for some unknown reason, signed the safe deposit rental agreement as both renter/owner and deputy. Obviously, a person is either one or the other. If Laverne had signed as renter/owner, then it would have been plausible to think perhaps Shirley was just going to be a deputy on Laverne's box. With Laverne never showing up to sign, however, you don't even know for sure that Laverne ever knew about the box, nor do you know whether she intended to enter into the contract.
One thing is certain: you never had a valid, completed contractual agreement with Laverne. The only party you have a contract with is Shirley, and she's the only one who has accessed the box. I would treat Shirley as the owner of the contents.
The original version appeared in the January/February 2003 edition of the Oklahoma Bankers Association Compliance Informer.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
