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#61019 - 02/13/03 04:06 PM Certificates of Deposit
RebekahL CRCM Offline
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RebekahL CRCM
Joined: Feb 2003
Posts: 776
Big Sky Country
Hello BOL World! I am brand-spankin' new to BOL threads, but I'm loving them so far! I'm also pretty new to my Compliance position, so I really need all the help I can get!

In my shop, we are considering getting rid of our formal "certificates" of deposits - the real, tangible piece of paper that customers can't seem to keep tabs of. Instead, we are considering issuing just the number, a receipt, and the proper terms and disclosures to the customer.

Do any of you do something similar to this, or know of any reason we should not? Frankly, we are getting tired of babysitting the documents for our customers.

Thanks for your help!
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Me, Type A? Maybe - I'm not done analyzing it yet.

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Operations Compliance
#61020 - 02/13/03 04:14 PM Re: Certificates of Deposit
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
Unless you are issuing negotiable CD's that's really all you are doing now. It's only your internal policies that require the customer to produce the document. The current piece of paper you are issuing itself has no value and it's no different than a receipt. There are no problems going this way - it's just a hugh customer comfort level issue. They are the ones that will fight it since the bank has made a stink forever if they lost this worthless piece of paper for the last 30 years. You have to change the way you design and execute your depositor's contract to support the process, but I would say go for it!
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#61021 - 02/13/03 05:06 PM Re: Certificates of Deposit
RebekahL CRCM Offline
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RebekahL CRCM
Joined: Feb 2003
Posts: 776
Big Sky Country
Thanks! We do not issue negotiable CDs, so I think we will follow through with the change.

I thought of another question, though...

Currently, we have the customer sign the dratted certificate when they want to cash it off. If we get rid of it, however, I assume we must have them sign something else to document their redemption or withdrawal from the CD.

Correct?

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Me, Type A? Maybe - I'm not done analyzing it yet.

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#61022 - 02/13/03 06:30 PM Re: Certificates of Deposit
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
Yes, that's true - and depending on your systems - it can be as simple as signing a withdrawal ticket.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#61023 - 02/13/03 07:08 PM Re: Certificates of Deposit
DeeQ Offline
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DeeQ
Joined: Dec 2002
Posts: 40,760
Turnpike Exit 10
As rlcarey stated, we do use just a withdrawal ticket to withdraw from
or close the CD, whichever the case may be.
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Get your facts first, then you can distort them as you please. - Mark Twain

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