Definition of Dormant CD

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Question:

I am working on processing dormant certificate of deposits for the first time. I need a confirmation on the definition of a dormant certificate of deposit. Is it considered dormant due to inactivity for a year from the original maturity date?

Answer:

This is a function of your state's abandoned property laws, coupled with reasonable controls designed to prevent insiders from messing with inactive accounts. Check with local counsel on the former, and with peers in your area for the latter. Guidance from your regulator or outside audit firm might also help on either side of this issue.

First published on BankersOnline.com 04/07/03