How many of you issue an original document vs. (i.e.) a receipt to the customer when you sell a CD? And, therefore, do your procedures require them to present this document for renewal/redemption?

Also, what do you do in the case of archive? Do you keep their signatures for more than seven years?

Statement CD's here - just a lousy piece of paper!

We use ARTA deposit (Bankers System program) that produces a paper document and all required diclosures that the customer gets. Yes we require that it be returned for redemption. All of ours are automatic renew with a 10 day grace period.

As above, Bankers System - auto renewal - works great.

Same with us, and has worked out well - no problems.

We currently still use the Certificate book (it updates like a passbook upon presentation). It is not required to be presented for renewal, but must be present for redemption. Personally, I like having a book; professionally, I think it's a big expense, not only for the books but for the data that must be retained out on the network until the book is updated.

For those of you who still issue a CD that must be redeemed for withdrawl, do you still hold it in safekeeping if it is pledged to a loan? And/Or, do you require an indemnity bond if it has been lost?

We've moved to book entry CDs and it has been great. They still get a receipt that looks exactly like the "original" CD, but "receipt" is printed on it. They do not have to surrender the document when redeemed. Our procedures for redeeming a CD are similar to simply making a withdrawl from a checking account. When a CD is pledged to a loan, we simply put a hold on the account...this has eliminated much of our safekeeping headaches.

I agree with your process. Requiring the certificate for redemption and holding it in safekeeping goes back to "old school" when CD's were negotiable. As long as you have controls/procedures in place to verify the identify of anyone attempting to redeem, and, for ensuring the hold on collateral, IMO, it's adequate.

If you are afraid that someone, other than the owner, could come in and cash the CD if they found it somewhere, I beleive you have other issues to address! I also found myself looking at nothing but CD's (or pieces of paper) when I would do a safekeeping audit. I quickly recommended removing them and if they just had to take it from the customer for the mental security, put it in the collateral file.