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#1935786 - 06/26/14 04:40 PM Night Depository Agreement
Auditor412 Offline
Member
Joined: Jun 2011
Posts: 51
Midwest, United States
Any suggestions, recommendation or best practices are greatly appreciated!!

Currently our bank prepares night depository agreements when a customer inquires about a night drop key. The agreement does not specify authorized individuals because they complete all agreements under Plan 2 which does not require authorized individuals; plan 2 states the bank will remove and open the deposit no later than the next business day after they are placed in the night depository and process under dual control.

The bank has businesses that don't use a night depository key but utilize the night drop in a similar fashion. These business come the following day and pick up their receipt from the previous day and occasionally collect a change order. Change orders are completed by either the business leaving cash in the bag dropped the previous night or by debiting the account. When the individual comes to pick these items up, the tellers have them sign a "receipt". Anyone stating they're from a company can pick up because we don't have any authorized signers anywhere.

Management does not want to complete night drop agreements for all of these customers because of the work involved and the constant maintenance it may involve when authorized individuals change. They also believe it will upset the business customers. Management mentioned creating a waiver releasing the bank from liability or having the business provide their own lists via a letter.

I've always seen these types of situations covered by an agreement prepared by the bank that lists authorized individuals and is signed by a signer on the account; the tellers are then made aware of who can conduct day to day business for the company and they are required to sign when items are picked up.

Any assistance is much appreciated!!!

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Operations Compliance
#1938762 - 07/08/14 10:33 PM Re: Night Depository Agreement Auditor412
JDCPDX Offline
New Poster
Joined: Jun 2014
Posts: 15
Second Star to the Right
For us, if anyone uses the night drop regularly they must sign an agreement, whether or not they have a key. And while our agreement doesn't list out each signer, whoever signs the agreement is agreeing that only those listed on the signature card are allowed to deposit bags/envelopes, and "perform any act with respect thereto as he or she may deem proper."

Honestly, we are small and most of our change orders come from the same places and the same people, and I haven't dealt with a situation where customers put money in the night drop for a change order the next day (or whenever). Usually whomever is picking up a change order will have a check or cash with them and we don't make them sign a receipt. If everything checks out alright, we send them on their way.

I would say perhaps it might be wise to document ID when someone comes to pick up a change order that was created off funds left in a night drop bag. At least then if something happened you'd have more to go off of than just a signature.

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