BOL recommends an indemnification letter when depositors want to withdraw large sums. I have a few comments on this letter. I have not researched these issues, and my concerns may not be applicable in all states. I would appreciate it if Mary Beth Guard would respond.

The BOL web site states:

"Cash Withdrawal Letter of Indemnification
BOL users started requesting a document advising customers that there was personal risk when the customer wanted to withdraw large amounts of cash. The bank wants to ensure everyone understands what is happening and wants to mitigate risks to the bank. Mary Beth Guard and John Burnett called out to some of our BOL users and here is the result. A quick and easy form to complete, that demonstrates there were options and advice given before the customer made a choice to take cash. You may use the PDF version or the Word version, which may be customized."

The last line of the letter states:

"By signing this document, I agree to hold __________ bank harmless for accommodating my decision to withdraw funds in the form of cash."

It is my impression that a requirement to indemnify the bank, as opposed to simply a notice or disclosure of risks, is a change in the terms and conditions of the account. It was always my impression that customers should receive notice of a material change in conditions before it is implemented.

In the case of a custodial or representative account, the letter might not prevent the protected person from later suing the bank.

If I saw one of these letters presented at the time of withdrawal, I would go across the street to another bank and ask the new bank to transfer all of my money to their bank and terminate my relationship with the former institution. The letter absolves the bank of all liability - premises liability, liability for passing counterfeit currency, etc.