We are using certificates (negotiable instruments) when we open up certificate of deposit accounts. I've heard of banks in other states are using signature card contracts instead of certificates. I like the idea of using a signature card instead of a certificate because the customer doesn't have to remember to bring in the certificate when they close their account. Does anyone know if there are any laws prohibiting the use of signature cards for certificate of deposit accounts in Indiana?
We give them a "Certificate of Deposit" and then if they don't bring it in when they cash in their CD we have them fill out an "Indemnity Bond for Lost Instruments". We keep the "Certificate of Deposit Copy and Certificate of Deposit Signature Card" which looks similar to the "Certificate of Deposit" for our records. I hope that answers your question.
Just went to a seminar yesterday and was told that we are one of the few banks left that actually use Certificate of Deposits...... signature card is what is being used supposedly by most, and there is a "receipt" that will print.