06/24/2013
We have a business customer that periodically transfers money from his business account to his grandchild's minor account. We are trying to explain to the tellers that they cannot do the transfer this way and they want to see it writing why it can't be done by a transfer slip and should be done by a check deposited into the minor's account. Can you direct me on where this documented and/or a reason to give them why it should not be done this way?
06/24/2013
On deposit accounts I have heard that some banks allow the owner to authorize a non account owner to conduct transactions on their account and they term it "subject to check." The authority stays in place until revoked or the owner's death. Is this common practice? I have not been able to locate any information on the term subject to check and what powers it encompasses.
06/24/2013
How should a testamentary account be titled?
06/17/2013
A customer has reported to us that his father has died. We have a joint account with this customer and the now deceased father. We tell the customer we need a copy of the death certificate and that we will remove the father's name from the account. The customer then tells us he is just about to file the father's tax return and that his accountant wants the father's name left on the account until his tax refund is direct deposited to the account. If this customer had presented a Treasury check payable to the father and attempted to deposit it, we would refuse as the check is now the property of the estate. Since we have knowledge of what the son is preparing to do, should we flag the account and return the tax refund as beneficiary deceased when it attempts to post to the account?
06/17/2013
Are we as a bank allowed to issue a debit card on a savings account only?
06/17/2013
Is there a reason that we should not issue 5 debit cards on a business account as long as our Agreement covers us?
06/10/2013
We are in a spitting match with another bank over some forged checks. We accepted them and sent them for payment to the other bank back in January. Over a month later, the bank returned them - one was stamped NSF, the other two had no reason, so we called and the bank faxed us forgery affidavits. From day 1 of my banking career, I have been taught that the paying bank eats forgeries, so we returned them as late returns. Then we got a letter from the bank demanding payment saying we had breached the transfer warranties (since there were forged signatures). We replied you are outside of your timeframe for breach of warranty and besides, we are holder in due course and you can't demand payment for forgeries from a holder. They replied since you knew they were forgeries, you were on notice of the breach of transfer warranty therefore we are within the timeframe. Neither one of us is giving in, but I can see where they are getting the breach of transfer warranty, which seems to be a contradiction to the holder in due course defense against forgery. So can we/how do we counter their argument of the breach of transfer warranty?
06/10/2013
What form do I use to create a power of attorney to be used in a new LLC company created in Florida for the owner's son to be able to act on behalf of the company in all matters?
06/10/2013
We have had instances where customers have filed debit card disputes after a merchant charged them twice for the same item. In most cases, the customer informs us that the merchant swiped the card and received a denied message and then swiped the card a second time and the authorization cleared. The customer then finds that the first authorization also cleared and they are then debited twice, but the merchant claims they only received payment once. Does the Bank always lose in this instance? Can we keep $50 from the customer due to liability?
06/10/2013
My bank follows a rule that we do not accept checks endorsed For Deposit Only or Pay to the Order of [a third party]. Can you direct me to the guidance on this, please?