I'm new to the compliance area for a small community bank. I came from a larger national bank where compliance was handled from a compliance deptartment. My question is the following:In reviewing several loans recently where we granted a loan for the purchase of land with a one year term with P and I due at maturity, I found no GFE, preliminary disclosure, or SDS. Are they needed on this type of loan? We also took as additional security a certificate of deposit. The note is a promissory note and does not have a security clause in it. We have an assignment of deposit account in file but no separate security agreement for the CD. I say we need one the lender says no. Who is right?
If a customer takes out a fixed-rate 12-month certificate of deposit and he wants a check monthly for the interest, are the rate and the annual percentage yield that you type on the certificate the same since nothing is compounding?
If a customer redeems a Certificate of Deposit and receives the funds (>$10,000) by way of a cashiers check, I know that a CTR would not be required. If the customer immediately cashes the cashier's check (the same day as CD was redeemed) the cashier's check is reported as a negotiable instrument cashed and no account number listed. My question is since the funds came from the CD would this CD be included on the CTR or if you did included this as a withdrawal would that lead one to believe there was both a cashier's check and a CD to make up the Dollar amount the customer received? I tend to believe the information from the CD would not be included since a cashier's check was issued.
We have a business that has a loan that is secured by another business's Certificate of Deposit. The loan became past due to the point that the CD was redeemed and applied to the loan. Now the borrower has declared bankruptcy and the CD owner would like information on the loan (which they did not sign, only assigned their property). Can we give them this information?
We have IRAs in our Certificate of Deposit application. Can customers over 59 1/2 come in and roll those over into another type of certificate without paying a penalty under Reg D? They are trying to get a better rate, I believe.
On an individual account for a son where the mother is an authorized signer what rights does the mother have on the account. My concern is that the son is going to war but does not want to make the mother a joint owner, with GLBA what in mind can the authorized signer receive statements, balance, information, etc.?
If a certificate of deposit is redeemed early (not during the allowed grace days), do we have the option of paying the accrued interest? I was told that we can waive the early withdrawal penalty if we choose, but that we still have to pay the accrued interest.
If interest on a 10 month certificate of deposit is paid at maturity, is it considered "compounded"? Should the account disclosures reflect the APY the same as the rate?