Overflowing Safe Deposit Function

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Question:

My bank ran out of space for safety deposit boxes and are now using generic vaults, which they leave unlocked, for additional boxes. These vaults are in the area where people view the contents of there safety deposit boxes. Are they in violation of the Bank Protection Act?

Answer:

I don't see a violation of the Bank Protection Act. However, I do think this practice is ill-advised, could lead to liabiity, and may also be at odds with the requirements of the company that insures your institution's safe deposit area.

First published on BankersOnline.com 2/21/05