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#2194539 - 10/03/18 01:47 PM Dormant Certificate of Deposit
Bankwoman1 Offline
Platinum Poster
Joined: Dec 2015
Posts: 954
Midwest
Can someone explain the process of closing a dormant CD in the state of Indiana to me? If a CD is considered dormant after 3 years, but the CD is for a term longer than 3 years - how many times can it auto-renew before being considered dormant? This seems very confusing to me.

Thanks!

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#2194550 - 10/03/18 02:44 PM Re: Dormant Certificate of Deposit Bankwoman1
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,359
Galveston, TX
(12) For a demand, savings, or matured time deposit, including a deposit that is automatically renewable, three (3) years after maturity or three (3) years after the date of the last indication by the owner of interest in the property, whichever is earlier. Property that is automatically renewable is considered matured for purposes of this section upon the expiration of its initial period, unless the owner has consented to a renewal at or about the time of the renewal and the consent is in writing or is evidenced by a memorandum or other record on file with the holder.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2194557 - 10/03/18 03:17 PM Re: Dormant Certificate of Deposit rlcarey
Bankwoman1 Offline
Platinum Poster
Joined: Dec 2015
Posts: 954
Midwest
Thank you Randy! So if a CD is initially opened as a 5 year CD and it auto renews - then after 3 years of the first renewal period with no contact it would be considered dormant - correct? What if the customer is receiving a monthly interest check that is being cashed elsewhere? Is that considered contact or not?

Thanks again!

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#2194559 - 10/03/18 03:23 PM Re: Dormant Certificate of Deposit Bankwoman1
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,359
Galveston, TX
See (2)(D)(iii)

IC 32-34-1-20Owner indication of interest in property; presumption of abandonment

Sec. 20. (a) For purposes of this section, an indication of interest in the property by the owner:

(1) does not include a communication with an owner by an agent of the holder who has not identified in writing the property to the owner; and

(2) includes the following:

(A) With respect to an account or underlying shares of stock or other interest in a business association or financial organization:

(i) the cashing of a dividend check or other instrument of payment received; or

(ii) evidence that the distribution has been received if the distribution was made by electronic or similar means.

(B) A deposit to or withdrawal from a bank account.

(C) The payment of a premium with respect to a property interest in an insurance policy.

(D) The mailing of any correspondence in writing from a financial institution to the owner, including:

(i) a statement;

(ii) a report of interest paid or credited; or

(iii) any other written advice;

relating to a demand, savings, or matured time deposit account, including a deposit account that is automatically renewable, or any other account or other property the owner has with the financial institution if the correspondence is not returned to the financial institution for nondelivery.

(E) Any activity by the owner that concerns:

(i) another demand, savings, or matured time deposit account or other account that the owner has with a financial institution, including any activity by the owner that results in an increase or decrease in the amount of any other account; or

(ii) any other relationship with the financial institution, including the payment of any amounts due on a loan;

if the mailing address for the owner contained in the financial institution's books and records is the same for both an inactive account and for a related account.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2194560 - 10/03/18 03:28 PM Re: Dormant Certificate of Deposit Bankwoman1
Bankwoman1 Offline
Platinum Poster
Joined: Dec 2015
Posts: 954
Midwest
Thank you Randy!

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#2194607 - 10/03/18 08:01 PM Re: Dormant Certificate of Deposit Bankwoman1
complianceman Offline
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complianceman
Joined: Mar 2005
Posts: 687
New Albany, IN
I believe the issue that is present in this case, which is based on a verbal interpretation of the IC and the IAC is that the 5-year CD would become dormant after its first renewal. So if the 5-year CD automatically renewed into a 3-year CD, then after the 3-year CD matures it CANNOT be automatically renewed. This was an issue a year or two ago and the IC and IAC were amended yet the AGs office has interpreted that the CD is dormant after its initial renewal.
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The opinion stated here is what it is, My Opinion.

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#2194616 - 10/03/18 08:32 PM Re: Dormant Certificate of Deposit Bankwoman1
Bankwoman1 Offline
Platinum Poster
Joined: Dec 2015
Posts: 954
Midwest
I'm confused with what you are saying complianceman. Our CD's renew at the same term they were previous in. So, if we have a 5 year CD that automatically renews - instead of becoming dormant after the first 3 years of the new term - you are saying it would become dormant after the full 5 years? I'm getting different responses from others.

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