Are there any regulations mandating how or where stock certificates must be verified for authenticity when pledged as collateral for a loan?

Chris,

Generally, an inquiry must be made whenever the face value of the bond, debenture certificate or the market value of the stock certificate exceeds $10,000. This purpose is to determine whether the certificate has been reported as lost, stolen or counterfeit. If a borrower pledges bonds, debentures or shares of stock as collateral for a loan, whether consumer, commercial or some other classification, the Bank must "inquire."


See SEC-SIC
MarkB

Is there any other way to do this other than through SEC-SIC (Thompson)??? We have VERY few stocks to check and the fees are fairly high.

Isn't it ok to go to a website with reliable stock information and print out the value of the stock per share on the day the loan is evaluated?

Re-visiting this issue as our fees at Thompson Reuters seem really high for the few deals we have.

What other options do I have? is there an ability for the bank to do this themselves?

Under what law is the requirement to check on stock to make sure it's "good?" I know it's good lending due diligence but these fees are really high for only a handful of loans and I'd like to pursue other options if we can.

Lost and Stolen Securities Program
(SEC Rule 17f-1)

Thank you!!!

Our correspondent bank recently stopped offering this service. Does anyone know of a bank or other organization that is a direct inquirer that contracts with smaller banks to perform this service for them?