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#538360 - 04/26/06 04:31 PM
Medallion STAMP program..
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Platinum Poster
Joined: Dec 2002
Posts: 862
Mexifornia
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We are having some debate as to what support documents need to be maintained when providing this service. At present we keep copies of every bit of paper that the customer comes in with and also keep a log of the transactions. I think this is unnecessary and if at all, we should only keep a copy of the instrument that was stamped and guaranteed.
Does anyone have any comments in this regards, what you guys do or not do?
Thanks.
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#538361 - 04/26/06 04:46 PM
Re: Medallion STAMP program..
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Diamond Poster
Joined: Sep 2005
Posts: 1,163
Georgia
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Keymark, in particular, has really started pushing this.
My suggestions: You definately need the log. Also, keep a copy of the instrument and any documents used to verify the signer(s)' identity and authority/capacity to sign.
Statute of limitations: date of the discovery of the fraud + 6 years.
Potential Cost to bank: Replacement cost of instruments sold, as of the date of the replacement (significant market risk).
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#538363 - 04/26/06 10:11 PM
Re: Medallion STAMP program..
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Platinum Poster
Joined: Dec 2002
Posts: 862
Mexifornia
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One more question - do you guys get customers writing stuff on blank sheet of paper and asking for Stamp guarantee? For example I just had one where the customer wrote the following on an A4 paper he asked of me: "I so and so would like to withdraw all my shares and change my address from x to y" - no other documents to back it up.
What do you do?
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#538365 - 04/27/06 06:32 PM
Re: Medallion STAMP program..
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Platinum Poster
Joined: Dec 2002
Posts: 862
Mexifornia
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Thanks - so what I hear you saying is if you know the customer, and you know the dollar amount and also know that the person is the rightful owner - you can guarantee a document, even if the instructions are written on a plain piece of paper?
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#538366 - 04/27/06 06:51 PM
Re: Medallion STAMP program..
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Power Poster
Joined: Jun 2003
Posts: 7,650
Florida
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Alien, be careful what you guarantee.
A lot of things can be written on a blank piece of paper after you stamp it. Another way of looking at it, would you stamp and guarantee the paper if YOU had to make good instead of the bank?
_________________________
Integrity. With it, nothing else matters. Without it, nothing else matters.
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#538368 - 04/27/06 10:50 PM
Re: Medallion STAMP program..
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Platinum Poster
Joined: Dec 2002
Posts: 862
Mexifornia
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Thanks guys - It appears I have staved off such requests so far with valid doubt, although I have been under pressure to "approve" these.
_________________________
If you have enough, would you know?
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#538370 - 05/02/06 01:03 PM
Re: Medallion STAMP program..
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Platinum Poster
Joined: Aug 2002
Posts: 554
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I know we've beat this up a bit in the past, but here goes. I agree with everybody saying the supporting documents must be saved by the financial institution, but have you trained your officers to determine if they are the correct documents to begin with? In other words, do your officers that are guaranteeing know if the person in front of them has the capacity to sign? Or do they rely on the person requesting the guarantee to know the correct forms to send to the transfer agent and just assume they are the right person to be signing? I'm especially concerned when there has been a death that our officers are unsure how to determine what forms are needed and is the right person in front of them requesting the guarantee? We are at a $100M limit and I recommend we do not increase to the next level ($250M) to minimize our exposure in this scary area.
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#538373 - 05/02/06 01:50 PM
Re: Medallion STAMP program..
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Power Poster
Joined: Jul 2003
Posts: 2,675
Austin Texas
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Who presented the session your folks went to? We're going to one in Austin this month - presented by Kemark, I think - I'd have to look to double check. My fear is we have banking center presidents in rural markets who may not be fully cognizant of the liability of this product and I'm hoping to bring back some info that will help me drive that point home.
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My comments are absolutely no reflection of, nor influenced by, my employer - take them at your own risk.
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#538375 - 05/02/06 04:11 PM
Re: Medallion STAMP program..
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Platinum Poster
Joined: Jul 2005
Posts: 793
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PQ, Would you mind providing the web address for Kenmark? I could not locate it on the web. Thanks.
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#538376 - 05/02/06 04:20 PM
Re: Medallion STAMP program..
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Platinum Poster
Joined: Jul 2005
Posts: 793
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I found it. It's Kemark. I typed Kenmark.
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#538377 - 05/02/06 06:16 PM
Re: Medallion STAMP program..
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Power Poster
Joined: May 2001
Posts: 8,458
Somewhere
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#538378 - 05/02/06 06:21 PM
Re: Medallion STAMP program..
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Platinum Poster
Joined: Jul 2005
Posts: 793
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Thanks PQ. I appreciate the link.
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