Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#2114427 - 01/17/17 07:37 PM Drilling Safe Deposit Boxes with Unknown Renters
Juby Offline
100 Club
Joined: Jul 2009
Posts: 218
We have a branch with about 50 safe deposit boxes for which we have no records - no lease agreements, no entry records, no payment records - to identify the lessees. It is unknown if these boxes have contents or were never leased. They have not been accessed for at least two years or more. Absent any records, could we drill these boxes to determine if they are occupied or empty? Then log any contents under dual control and store securely? Not sure the best way to handle this situation.

Return to Top
Operations Compliance
#2114429 - 01/17/17 07:44 PM Re: Drilling Safe Deposit Boxes with Unknown Renters Juby
ocbeach Offline
Junior Member
Joined: Sep 2015
Posts: 47
Maryland
If there have been no payments, my thought would be to wait until your state escheatment laws come into play. Then drill and remit contents as necessary to your State Comptroller/Treasurer, etc. And of course, dual control smile

Return to Top
#2114482 - 01/18/17 04:52 AM Re: Drilling Safe Deposit Boxes with Unknown Renters Juby
JacF Offline

Power Poster
Joined: Nov 2001
Posts: 6,719
PA
It sounds like there is more to the story. What leads you to conclude that these are not simply unrented boxes? Do you have keys for them?

Return to Top
#2114488 - 01/18/17 12:31 PM Re: Drilling Safe Deposit Boxes with Unknown Renters Juby
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
If I had existing customers wanting to rent boxes, I would begin the process of systematically drilling and inventorying each box, dealing with its contents as appropriate. (Based on experience, most are empty.) Absent that demand, I would avoid incurring the expense and find something else to do.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#2114550 - 01/18/17 03:48 PM Re: Drilling Safe Deposit Boxes with Unknown Renters Juby
Juby Offline
100 Club
Joined: Jul 2009
Posts: 218
We do not have keys or any records for them to know if they are rented or unrented. We do have a waiting list of individuals for roughly half of the number of boxes we do not have records for. Thanks everyone for your opinions. We are going to drill and inventory.

Return to Top
#2114553 - 01/18/17 04:08 PM Re: Drilling Safe Deposit Boxes with Unknown Renters Juby
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
I'd also be concerned about how the current situation was allowed to develop. I might understand if it's a branch that your bank acquired from another bank and the records just didn't get transferred. But if this is a branch that's established in your bank, there ought to be controls, audit records, something that can be used to determine which boxes are available and which are not.

Drilling a rented box for which payments are current can be opening a Pandora's box of troubles and risks that you cannot possibly quantify, because you don't know "what's behind door number 1."
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Andy_Z, John Burnett