Ken Golliher is a principal with Pegasus Educational Services, LLC., a training firm organized in 1996 with headquarters in Louisville, Kentucky. Pegasus specializes in technical and regulatory instruction for financial institution personnel. He is an experienced banker with a unique ability to reduce complex legal concepts to plain English. He has explained the "why" and "how" of regulations to thousands of financial institution personnel and examiners. Ken's banking career began in 1972 and includes serving as a teller, commercial operations manager and as trust department legal counsel in a state and a national bank. For ten years he headed the education division of a regional consulting firm for financial institutions. He has served on the faculty of the LSU Graduate School of Banking, the OTS' Level I Compliance School and the FDIC's Advanced Consumer Protection school for examiners. Ken has also been an instructor at compliance schools sponsored by the Illinois, Georgia, Indiana and Nebraska bankers associations.
How would you define reasonable notice used in the following terms and conditions disclosure? We may also close this account at any time upon reasonable notice to you and tender of the account balance personally or by mail. Reasonable notice depends on the circumstances, and in some cases such as when we cannot verify your identity or we suspect fraud, it might be reasonable for us to give you notice after the change or account closure becomes effective.
It was recently brought to my attention some of our tellers have been assisting a commercial customer by carrying out bulk coin to the customer's car on change order days. Although I commend the tellers for going the extra mile, I view this as a security and liability risk. Is this gesture a common and acceptable practice?
I'm not sure what this falls under, but I have a question about safe deposit boxes. I have always been told that if you have a safe deposit box joint with someone else and you wanted to remove their name from the box then you could do so. Is this not something you can do? I know you cannot remove a joint owner from a checking, savings, etc.
With the new expectations of the CDD Rule that goes into effect next month, are we required to identify authorized signers on business and organization accounts?
Collection communication for demand deposit accounts (i.e., overdraft notices, NSF notices, request for payment, etc) - are we allowed to send such notices if we are aware of an active bankruptcy case? What if we are not made aware of the bankruptcy case?
A client wishes to open a joint account and designate 3 POD's; 2 are "Trust Under Agreements" and the 3rd is an actual person. First, I don't see the 2 beneficiaries as conforming to the FDIC definition of a beneficiary. I have concerns with that. Furthermore, is it permissible and what are the ramifications in allowing it? Or should this be handled in a bank with trust services?
We have a branch in a different state. Would our deposit and loan disclosures work across state lines, or would we need state specific disclosures?
In regards to the control prong of the beneficial ownership certification, can more than one person be listed? We have condominium association accounts that have a board that makes all decisions and they may not want to designate just one control person.
Is a customer notice (lobby notice or desk notice) required to inform customers about the beneficial ownership requirements? If we choose to develop our own form for the customer to sign verifying the ownership and control prongs for beneficial ownership, do we also need to include all of the instructions included in Appendix A?
Is it a requirement to obtain photo ID's for Beneficial Owners who are not actually signers or responsible parties to a checking account or loan account? If not a requirement, is it overkill to obtain them?