Expensive CD mistake

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Question:

Bob and Mary purchased an alternatively payable CD. Mary wants to cash it in. Bob is in the hospital and she doesn’t know where the certificate is. Should we allow her to cash it in?

Answer:

Examine your contract. If it requires physical surrender of the certificate and the certificate cannot be located, you need to get an affidavit from all joint owners attesting to lack of knowledge of its whereabouts before you pay out. If one of the joint owners is not in a position to sign such an affidavit, don’t pay out to a different joint owner unless that person is able to provide a reliable indemnification agreement.
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