We have an account, for example Edward Jones, that deposits third party items into their account. These items vary with some payable to Trusts, individuals and/or businesses. We felt there was a problem letting them do this. An Indemnification Agreement has been presented to us that would clear us of any loss, legal action, liability, etc. Should we sign this?
Thanks!!!

Is this a check-cashing facility? (an MSB)?

No, they are a full-service broker.

I always feel like a broken record . . but have your counsel review the agreement first.

One thing I always point out to my management about these indemnification agreements is that they are only as good as your ability to collect on them if you sustain a loss. That of course implies that your bank is first, willing to risk taking a loss, then willing to invest the time and expense to go after the indemnifying party for recovery. Expect to have to sue to recover if the dollars are high.

In my view, you better have a mighty good customer to even consider taking one of these.

I take it these checks are properly endorsed over to Edward Jones, Inc.. If so, I see little to worry about. These entities are customers of Edward Jones, Inc. and are just making deposits to their investment accounts. As long as you think that Edward Jones is going to stay in business or (if that was just a named example) that the business is a legitimate going concern like a nationally recognized investment company, the acceptance of the hold harmless agreement is really a no-brainer.

Not all of the checks are properly endorsed...I think I know which direction to take this now. Thank you all for your input!