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#395163 - 08/02/05 04:53 PM RTFP- 2 Q's- loans as property and branches served
Dip Offline
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Dip
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San Diego, CA
Reposting this in the audit forum- not getting any replies in the compliance one.

If not expressly levied upon, are loans you hold for a customer considered property that should be reported? For example, if I received a Writ of Execution which levied all accounts held on behalf of the debtor, and we did not hold any accounts, but held a constuction loan and a line of credit, would I report that on the section of the Memorandum of Garnishee that says:
"For writ of execution only. Describe any property of the judgement debtor not levied upon that is in your possesion or under you control."
I searched the Federal and CA rfpa's and haven't come across anythign that touches on this. Am I blind? Please help!!!

Also, maybe someone can help me on this as well. Most levies are only for the branch they are served at (except for IRS ones). I read that fi's can designate a main branch to accept all levies for the county in which a levy is served, but what about branches in other counties? when my bank receives a levy, they forward a copy to all the branches in 5 different counties, and then we take action on any accounts that come up. Is this ok? I need to know if it is ok and we are just doing more work than we need to and that we are not violating the regulation and our customer's rights by reporting accounts that were'nt served by the levy.

Help!!!
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#395164 - 08/02/05 08:41 PM Re: RTFP- 2 Q's- loans as property and branches served
Anonymous
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Saw your post over the cooler about the lack of response to your questions. I'm responding to say I have no idea as to the answers. That may be why nobody else is responding too. You might want to talk to your counsel about this.

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#395165 - 08/02/05 08:44 PM Re: RTFP- 2 Q's- loans as property and branches served
Anonymous
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dito

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#395166 - 08/02/05 08:46 PM Re: RTFP- 2 Q's- loans as property and branches served
Dip Offline
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Dip
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San Diego, CA
well then, what are other fi's doing? i'm more concerned about the second question at the moment. when a levy is received, do you just go ahead and forward it to all branches to satisfy the levy, or do you keep it to just the branch it was served at, and if the account isn't housed at that branch, you dont remit anything? the regulations i've come across don't say that you can't do it like that. are they just tryign to place less burden on the fi by only requiring remittance if the accoutn is housed at the branch served?

ahhhhhh!
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#395167 - 08/02/05 08:48 PM Re: RTFP- 2 Q's- loans as property and branches served
Truffle Royale Offline

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As soon as I'm dealing with complying with actual laws, my first stop is house counsel.

You might also try your state's banking association. If they don't have the answer, they can point you in the right direction.

FWIW, would never have seen your post if you hadn't been 'grumpy'.

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#395168 - 08/02/05 08:48 PM Re: RTFP- 2 Q's- loans as property and branches served
deppfan Offline
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All over the map.
Ditto again. You might be able to pm one of the gurus, but I think your legal counsel would be your best bet. Also, check with your state banking association legal counsel. Sorry.
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#395169 - 08/02/05 08:49 PM Re: RTFP- 2 Q's- loans as property and branches served
P*Q Offline

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I'll take a stab at your 2nd question, all levies are to either be served or sent to our main office, we have one person that handles them all. That way we can ensure that we are providing only the info requested. I'd strongly recommend that you limit the # of people/depts that can accept subpoenas and provide info.

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#395170 - 08/02/05 08:53 PM Re: RTFP- 2 Q's- loans as property and branches served
RR Sarah Offline
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Up North
I'm not sure if this will help but here goes...I spoke with our Collection Officer on this and she said that typically levies are in search of deposit accounts only and she has never had to provide information on loans the customer may hold (except in certain IRS levies). Definitely, as others suggested, talk to your counsel or your state banking association.

I can not help with second question as we do not have branches.
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#395171 - 08/02/05 08:56 PM Re: RTFP- 2 Q's- loans as property and branches served
Dip Offline
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Dip
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San Diego, CA
hmmm. i don't even knwo who our legal counsel is, but i think at this point i will check that out. i'll see hwat the other auditor thinks, since he's been the only auditor here for the past umpteen years. it's just that he's been out of the office the past couple days... thanks though. i feel a little better now. i think i'll break for lunch...
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#395172 - 08/02/05 09:15 PM Re: RTFP- 2 Q's- loans as property and branches served
RR Sarah Offline
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As an auditor I would definitely become familiar with who your bank counsel is. Also, if you belong to your state banking association you may have access to their counsel as well. I usually don't post a response unless I am sure of an answer but I do make use of advice from our state banking association on a regular basis.
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#395173 - 08/03/05 12:21 AM Re: RTFP- 2 Q's- loans as property and branches se
Kathleen O. Blanchard Offline

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Quote:

If not expressly levied upon, are loans you hold for a customer considered property that should be reported? For example, if I received a Writ of Execution which levied all accounts held on behalf of the debtor, and we did not hold any accounts, but held a constuction loan and a line of credit, would I report that on the section of the Memorandum of Garnishee that says:
"For writ of execution only. Describe any property of the judgement debtor not levied upon that is ]in your possesion or under you control."




The property related to the loans as pledged collateral is not in your possession or under your control unless you are actually holding collateral at the bank in your vault (such as securities, jewelry, etc.]

Quote:

Most levies are only for the branch they are served at (except for IRS ones). I read that fi's can designate a main branch to accept all levies for the county in which a levy is served, but what about branches in other counties? when my bank receives a levy, they forward a copy to all the branches in 5 different counties, and then we take action on any accounts that come up. Is this ok? I need to know if it is ok and we are just doing more work than we need to and that we are not violating the regulation and our customer's rights by reporting accounts that were'nt served by the levy.




Most banks designate one central area to handle subpoenas, levies and judgments. It is safer that way. If you are sending them out to several branches, do they have to report back to a central area so that you can control the responses, know when a response has been made, etc.? At one prior bank the only thing we sent to other areas were notices of bankruptcy so that any lending area that might have the related entity as a guarantor, etc. would be aware. Otherwise, this is generally all handled centrally and the response is for all accounts at the financial institution (not just at the branch the customer uses...the request goes there because that is the address the customer provided.)

You should get your legal counsel involved in this process.
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#395174 - 08/03/05 04:00 PM Re: RTFP- 2 Q's- loans as property and branches se
Dip Offline
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San Diego, CA
thanks kaybee- very helpful!
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#395175 - 08/03/05 08:10 PM Re: RTFP- 2 Q's- loans as property and branches se
Too Young To Retire Offline
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Joined: Jun 2005
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Ours is also handled in a central location. Are all of your banking centers on-line so you can see all of the customers accounts, no matter which banking center they were opened at? We have banking centers in 7 different states, so you should have someone knowledgeable about the different state requirements. Most of them are different. You will have better consistency and control if their handled centralized.

Don't know if that helps.
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#395176 - 08/04/05 06:39 AM Re: RTFP- 2 Q's- loans as property and branches se
Princess Romeo Offline

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dipitous - I rarely enter the Audit forum but I saw your post in the Watercolor.

I see that you're in Souther California. Does your bank belong to Bankers Compliance Group? That is the sort of question that they can easily answer.

Another source is Gene Elerding at Mannatt, Phelps and Philips.
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