Question: I have a question in regards to a delinquent safe deposit box. The box is past due over 90 days and we have sent a letter to the customer letting them know that they have 30 days to contact us in regards to this box. We received this letter back saying that the customer has moved and the post office has no forwarding address. Can we go ahead and drill the box after the 30 days as long as we have a copy of the letter and the envelope showing that we tried to contact them?
Answer: The statute that governs this is Section 1310 of the State Banking Code. In part, the statute reads as follows:
"If the lessee fails to pay the rental due and such default continues for sixty (60) days, the lessor may give the lessee thirty (30) days' notice by certified mail addressed to the lessee at the address shown on the lessor's records or the last-known address of the lessee, stating the amount due and that on or after the day designated in the notice it may open the box, remove the contents thereof and hold the same for the account of the lessee."
Make sure you:
-- tried to send the notice by certified mail, since that's required by
the statute;
-- sent it to the correct last-known address of the lessee.
If you've done that, you should be able to follow the procedure outlined in the statute to drill and open the box. Remember, you will need the opening to be witnessed by at least two persons, at least one of whom must be an officer of the bank.
Then, after you have properly drilled and inventoried the box, you must hold the contents for 1 year. Then you can follow the procedure for selling them.
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