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#6217 - 11/02/01 06:54 PM CERTIFICATE OF DEPOSIT VS RECEIPTS
Anonymous
Unregistered

We are considering going from issueing an actual Certificate of Deposit to a book entry only providing a CD deposit receipt. What kind of information must we disclose on the receipt vs the Certificate, do we need a W9, do we disclose the backup withholding %?
If you are currently doing book entry only, please share your information.

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General Discussion
#6218 - 11/02/01 07:44 PM Re: CERTIFICATE OF DEPOSIT VS RECEIPTS
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
We have providing book entry CDs for several years with great success. The CD receipt is similar to a CD with a disclosure below the amount indicating it is only a receipt. It is great not to have to worry about getting a "real" CD back into your hands for redemption or partial withdrawal.

We will provide a "real" CD to the handful of customers who won't have it any other way. We also utilize the "real" CDs if held as collateral on loans.

The method of documenting the CD deposit has no relation on certification of TIN as far as I know.

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#6219 - 11/05/01 08:37 PM Re: CERTIFICATE OF DEPOSIT VS RECEIPTS
D C Offline
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Joined: Jul 2001
Posts: 4
So how do you handle the redemption of the CD without requiring the surrender of the Certificate? My main concern is in regards to record retention, how do you go back and prove to a customer that the CD was redeemed by an authorized signer?

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#6220 - 11/05/01 09:17 PM Re: CERTIFICATE OF DEPOSIT VS RECEIPTS
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
There is no CD to surrender. It is treated just like any other deposit account. We have a signature card to document account owners and authorized signers.
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Life without Jesus is like an unsharpened pencil - it has no point.

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#6221 - 03/21/02 01:52 PM Re: CERTIFICATE OF DEPOSIT VS RECEIPTS
Anonymous
Unregistered

If customer gives you a check to open a $10,000 cd, what kind of entries do you run through proof?

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#6222 - 03/21/02 02:20 PM Re: CERTIFICATE OF DEPOSIT VS RECEIPTS
Anonymous
Unregistered

I would think you run a GL ticket. We do CDs this way and use a Bankers Systems Form on a F.A.S.T. platform. Most customers hold on to the "receipt" which looks much like a CD, but it is not necessary to cash out the CD. Of course, you want proper identification cash out CD, just as you would with a checking or savings account. It works just great.

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#6223 - 03/21/02 03:34 PM Re: CERTIFICATE OF DEPOSIT VS RECEIPTS
Anonymous
Unregistered

We, too, utilize paperless CDs for everything except CDs used as collateral on loans. Our bank counsel was not comfortable with being able to perfect lien. We have a CD deposit form which serves as a receipt and books the deposit to our GL. We also have a CD withdrawal form which has a place for the customer sign acknowledging withdrawal request. It also documents whether the withdrawal is to an IRA and reminds personnel that an additional form will be required to document type of IRA withdrawal. As previously mentioned, it works great. (And greatly reduces problems associated with lost instruments!)

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#6224 - 03/21/02 03:44 PM Re: CERTIFICATE OF DEPOSIT VS RECEIPTS
Anonymous
Unregistered

Would you know the specific ucc citation regarding the perfecting of cd secured loans?

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#6225 - 03/21/02 06:12 PM Re: CERTIFICATE OF DEPOSIT VS RECEIPTS
Anonymous
Unregistered

For those of you who offer these did you have to change your TISA disclosure regarding how you would handle renewals, etc.? Did you have to modify your signature card or were you able to use the one for checking/savings? Thank you in advance.

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#6226 - 03/21/02 10:13 PM Re: CERTIFICATE OF DEPOSIT VS RECEIPTS
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
There was no change in our CD product; therefore no NOC was required. The customer now gets a receipt instead of a "real" CD. It actually looks similar to a CD but has the receipt language incorporated into the form.
_________________________
Life without Jesus is like an unsharpened pencil - it has no point.

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