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#739893 - 05/24/07 07:19 PM Segregation of charged off notes
PBauditor Offline
New Poster
Joined: Dec 2006
Posts: 9
I know that charged off notes are to be segregated and under dual control, but what I don't understand is why. What is the reasoning behind this?

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Audit
#740300 - 05/25/07 01:58 PM Re: Segregation of charged off notes PBauditor
SavannahOne Offline
Diamond Poster
Joined: Sep 2005
Posts: 1,163
Georgia
Not all banks will have them under dual control. They do, however, need to be secured so as to prevent them from disappearing into the night should the loan be fictious or involve a "quid pro quo" with someone within the bank.

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