Using a CD to Offset a Delinquent Note

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Question:

If we use a Certificate of Deposit for an offset on a delinquent note, should we charge the early withdrawal penalty and credit the accrued interest?

Answer:

In the past I would examine the circumstances of the account and generally did not charge the penalty on a CD when I took it. I think you may be within your rights, but I'd associate it with rubbing salt in a wound. Maybe I was too nice.

First published on BankersOnline.com 05/5/03