We received a levy, and the customer has a CD that is pledged as security on a loan. Does our perfected security interest trump the levy or do we have to exercise our right of offset (cash the CD and pay the loan) in order to not be required to satisfy the levy with it? Secondly, if a customer we get a levy on has both deposit accounts and loans, do we have to exercise our right of offset or does simply that right trump the levy. Can the bank say there are no funds available to satisfy the levy, even if the right of offset is not actually invoked, assuming the customer owes more in loans than is in the deposit account?
Something in the back of my mind tells me it is against some Reg to go ahead and pay an overdraft from a person's DDA when we are expecting that OD to be reimbursed by their ACH deposit from Social Security. Could you please clarify this issue for me, with reference to the Reg or law? If I know which one, I can copy the chapter and verse and bring it up at training.
What is our right to offset a delinquent personal loan with a DBA deposit account bearing the same social security number?
Question: We have a single name checking account and an IRA with the mother of a son and daughter.
I am trying to write guidelines for our Branch Managers for handling losses or potential losses reulting from overdrafts, returned items, forgeries etc. For instance, send a letter certified and regular, if not paid in x days, contact x, when to file a police report, etc. Have you ever come across such guidelines or procedures?
Where would I locate information regarding "Right to Offset or set Off" Information such as what types of accounts can the off set be applied against and any other information.
Question: We have had an overdraft on a customer's account for over three months.