Restrictive Legends on Checks
06/03/2002
A customer has printed on their checks void after 90 days. Is it the bank's responsibility to monitor these items?
John Burnett
Bio:
John has been BankersOnline's resident expert for more than 20 years, serving as Executive Editor and frequent presenter in BOL's suite of events.
Burnett joined BankersOnline in 2004. He is a 1990 honors graduate of the Stonier Graduate School of Banking and is an alumnus of the ABA National Compliance School, where he served on the faculty for several years.
John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He moved to Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, and as clerk of the bank's holding company.
He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He is a regular presenter and participant in BOL Conferences events.
Contact info:
You may contact John via email at jburnett@bankersonline.com.
Questions Answered
Understanding Due on Sale vs. Right of Offset
06/03/2002
I have a construction loan promissory note that contains the "Right of Setoff" paragraph in it,along with the normal "due on sale". What are the ramifications of this combination on the promissory note?
Appraisal Right Notice On A Commercial Loan
06/03/2002
<a href="http://www.bankersonline.com/regs/202/202.html">Regulation B</a> Loan issued to an individual for the purpose of refinancing commercial property. Are we required to provide the "Right to Receive Copy Of Appraisal Notice"?
Periodic Statement Exception, Transfers, and ATM Transactions
06/03/2002
Does the periodic statement exception <a href="http://www.bankersonline.com/regs/205/2059.html">205.9(c)(1)(i)</a> for passbook accounts apply to telephone banking transfers or to ATM activity on a passbook savings account? We are adding ATM access and Telephone banking and were wondering if the passbooks were exempt from the periodic statement requirement. If not, it would probably be easier for us to only offer these services with a statement savings account.
Notice Requirements: Closing An ATM Location
06/03/2002
When an ATM location is going to be closed, what type of notice is required?
Time Period For Monitoring MMDA Transactions
06/03/2002
Can MMDAs be monitored for excessive transactions on a calendar month versus the account's statement cycle? For example, a particular MMDA cycles on the second Tuesday of each month but our excessive report looks at activity from the first day of a month through the end of the month?
Annual Disclosures as Statement Stuffers
06/03/2002
For Reg P purposes, is it ok to send out annual disclosures as a statement stuffer (provided you meet the definition of "clear and conspicuous") and deliver it to all customers?
Holds on Credit Card Checks
06/03/2002
We would like to know why we cannot put an exception hold on a credit card check or a insurance draft. A credit card check is truly a request for credit and an insurance draft is not a check. These checks have restrictive endorsements. We just participated in a Pegasus phone seminar and the gentleman replied that the Reg states that we cannot put a classification on a specific type of check.
FTC's Preservations of Claims and Defenses
06/03/2002
When would we use FTC's Notice "Preservation of Consumer Claims and Defenses" and where do I find the regulation on this?
What is the UCC Code on the time frame for a forged/improper/ missing indorsement?
05/20/2002
What is the UCC Code on the time frame for a forged/improper/ missing indorsement? I was told that it was three years after the date of the endorsement. I can't seem to find it in the bank law book. Do all of the above apply to the 3 year time frame?