When a client cannot find his/her CD, does Iowa Law require us to fill out and Indemnity Bond for the lost instrument? What about if teh CD is non-negotiable or non-transferrable.
Thanks,
I am not sure if Iowa law requries it. At one bank I worked at in Iowa, we did not require this which makes sense. We called them electonic CDs as the information is held on the system and we could re-print the CD certificate/form as needed. Simply put, if a customer came into the bank to renew or close out the CD and did not have the original printed copy, we just printed another one. At my current bank, imdenity bonds are completed but no one can explain the reason for it when the bank can simply print off another copy of the CD that was provided to the customer at CD opening. I think the need for the imdenity bond is antiquated and dates back to when CDs were on the the carbon forms, completed with a typewriter, and placed into safe deposit boxes, etc. Just my opinion of course...
Posted By: SSBStephanie
Re: Indemnity Bond - 04/05/10 08:59 PM
I would be curious on this also. We have the practice of creating indemnity bonds for lost CDs and I'd like to know if we can just print them off instead.
Our bank does not require the customer to bring in the certificate to cash it out. It is stored on our computer systems so we can just look up the account and verify signatures. If they just need a copy we can just reprint it in our account uploading software and print it that way.