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Inspecting What Goes into a Safe Deposit Box

Question: 
Our bank provides safe deposit customers a list of inappropriate objects that are not to be kept in safe deposit boxes. Does anyone have a process for actually inspecting what the renter is putting in the box? In this age of terrorism, etc.. is there any method/practice to screen what is being put into the safe deposit box? This question was prompted by a branch manager who was asked by a non-customer if they could rent a safe deposit box for a "peculiar container".
Answer: 

Answer by Dave McGuinn:

Hopefully, no financial institution is even thinking about inspecting a box renter's safe deposit contents. This is the quickest way to create Unlimited Liability for your institution.

Historically, we have been taught to never know what a renter keeps in his box. This is recommended because of the lessee/lessor relationship that we must establish with our renters. If you know what the person is storing in the box, this box relationship will be considered a bailee/bailor relationship. This bailment interpretation would be disasterous in a courtroom if you were ever sued.

If this box renter acts suspicious or you have reason to think their activities could create a security problem for your institution, discuss your concerns with your security officer and consider asking this renter to terminate this agreement.

Answer: 

Answer by Dana Tuner:

I don't know of any banking regulation that will allow you to inspect the proposed contents of the box. Several states have passed laws regarding health and safety -- and other crime -- issues, however. But these laws only apply "after the fact" and they really don't help you here.

I served many search warrants during my law enforcement career -- and the unusual things that folks leave in their safe deposit boxes are incredible. Examples include:

  • Ammunition
  • Child pornography
  • Drugs by the pound
  • Fish, poultry and vegetables -- rotten
  • Handguns used in homicides
  • Human hand in a Mason jar
  • Spanish land grant -- original
  • stolen property
  • Videotape of sexual assault

While you can't inspect the contents before they're secured, you can ask your legal counsel to prepare appropriate wording for your contract that causes the renter to become personally responsible for any damage to property or persons as a result of items stored in the box.

First published on BankersOnline.com 6/17/02

First published on 06/17/2002

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