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#442737 - 10/18/05 04:48 PM Negotiable Collateral Policies
A_G Offline
10K Club
Joined: Jul 2004
Posts: 19,001
I'm posting this in lending, although it could probably also be posted in operations compliance. I am wondering if anyone is willing to share their negotiable collateral policies with me, especially policies regarding stock held as collateral and CDs held as collateral. Thanks.
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Lending Compliance
#442738 - 10/18/05 04:53 PM Re: Negotiable Collateral Policies
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 84,326
Galveston, TX
Stock Certificates - typical dual control secure environment.

CD's - if non-negotiable - it's really up to you, as the pieces of paper have no value.
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#442739 - 10/18/05 05:03 PM Re: Negotiable Collateral Policies
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Quote:

Stock Certificates - typical dual control secure environment.

CD's - if non-negotiable - it's really up to you, as the pieces of paper have no value.



I agree. I also require that we keep a log of the contents of the securities held under dual control.
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#442740 - 10/18/05 07:58 PM Re: Negotiable Collateral Policies
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
Quote:

Stock Certificates - typical dual control secure environment.

CD's - if non-negotiable - it's really up to you, as the pieces of paper have no value.



I agree also, but would add that we do not allow CD's to collaterlize loans that are maintained by other banks. This is because there is no way to police it (i.e. the other bank may allow withdrawal of the CD without our knowledge)

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#442741 - 10/18/05 08:02 PM Re: Negotiable Collateral Policies
Anonymous
Unregistered

I would also as an auditguy perform a routine review using Okie Banker's list to verify contents and sample those removed since last audit for authentication.

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