Good News...Bad News

Financial institution for faster service, more efficient handling, and better transmission of information. Disclosures can also be FAXed.

The bad news is, if the paper in the financial institution's fax machine is of low quality, or if the FAXed copies are exposed to too much light, the application and disclosure can fade and disappear! And the institution will not be in compliance with Regulation B or Z if it does not have records.

FAXing between banking offices can run the same risk.

A fax retailer says that, under normal conditions, a fax on medium quality paper should retain its image of more than 95 percent of the initial recording for up to one month when exposed to inside lighting. Sunlight will shorten the life of the image. If the fax is filed immediately in a drawer, under normal conditions it should remain legible for up to five years.

It may be safest to make a photocopy of the FAXed document upon receipt. Your other method of recording, of course, is to microfilm the documents. If they are retrievable from that source, you are still in compliance with the regulations.

Bankers Hotline, Vol. 2, No. 6, 7/8/91
Copyright, 1991, Bankers Hotline