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#563617 - 06/07/06 09:44 PM Dormant account
foore68 Offline
New Poster
Joined: May 2005
Posts: 11
If a customer's account is in dormant status and he called and requested to activate the account (he's out of the country), would that constitute reactivation without signature? Thanks!

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#563618 - 06/09/06 02:52 AM Re: Dormant account
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
ยง1513. When Property Held by Business Association Escheats to State

(b) Except as provided in subdivision (f), any demand, savings, or matured time deposit, or matured investment certificate, or account subject to a negotiable order of withdrawal, or other interest in a financial organization or any deposit made therewith, and any interest or dividends thereon, excluding, from demand deposits and accounts subject to a negotiable order of withdrawal only, any reasonable service charges that may lawfully be withheld and that do not (where made in this state) exceed those set forth in schedules filed by the financial organization from time to time with the Controller, when the owner, for more than three years, has not done any of the following:

(1) Increased or decreased the amount of the funds or deposit, cashed an interest check, or presented an appropriate record for the crediting of interest or dividends.

(2) Corresponded electronically or in writing with the financial organization concerning the funds or deposit.

(3) Otherwise indicated an interest in the funds or deposit as evidenced by a memorandum or other record on file with the financial organization.

A deposit or account shall not, however, escheat to the state if, during the previous three years, the owner has owned another deposit or account with the financial organization and, with respect to that deposit or account, the owner has done any of the acts described in paragraph (1), (2), or (3), and the financial organization has communicated electronically or in writing with the owner, at the address to which communications regarding that deposit or account are regularly sent, with regard to the deposit or account that would otherwise escheat under this subdivision. For purposes of this subdivision, "communications" means account statements or statements of interest paid for federal and state income tax purposes.

No financial organization may discontinue any interest or dividends on any funds paid toward purchase of shares or other interest, or on any deposit, because of the inactivity contemplated by this section.


So it would appear that if you drafted a memorandum regarding the telephone conversation and made it a part of your permanent account records - it would suffice in reactivating the account for escheat purpose - but I might not recommend that as you would really need to have some controls on this as it would be a great area for employee fraud. I would rather tell the customer that you are going to send them and letter that they can sign to reactivate their account and then compare the customers signature with your signature specimen when the letter is returned.
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