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#1779748 - 01/25/13 03:10 AM When to require a night drop agreement?
SWFLBanker Offline
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Joined: May 2012
Posts: 33
During a recent branch audit I found that we have several customers who are utilizing the night drop without agreements in place. Our night drops open just enough to get an envelope in them without using a key. The scope of my audits cover a three month period prior to the audit date, unless issues cause a longer look back. I have recommended that any customer that uses the ND more then five times in a three month period an agreement should be obtained for those customers. I am wondering if anyone else has run into this issue and how you handle it? Are there best practices about what constitutes regular use? I am concerned about the liability that comes into play about differences and corrections to deposits when no agreement is in place. I would be extremely great full for any insight.

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#1779762 - 01/25/13 01:02 PM Re: When to require a night drop agreement? SWFLBanker
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,323
Galveston, TX
"I have recommended that any customer that uses the ND more then five times in a three month period an agreement should be obtained"

Why, what additional risk is presented by the customer that does it more than five times versus the customer that only does five. Heck, if that was the case, I would have to sign one with my bank as I never go into the lobby and make most of my deposits at night or on the weekends.

Many banks have a standard night depository agreement built into their depositor's agreement and it is not a stand alone document. Standalone documents are usually used when a business customer wants to deposit bags into the night depository and retrieve them the next day or some other similar type of service.
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#1779903 - 01/25/13 04:49 PM Re: When to require a night drop agreement? rlcarey
A_G Offline
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Posts: 18,960
Originally Posted By: rlcarey
Many banks have a standard night depository agreement built into their depositor's agreement and it is not a stand alone document. Standalone documents are usually used when a business customer wants to deposit bags into the night depository and retrieve them the next day or some other similar type of service.


That is the exact process here.
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