Skip to content
 

Paper CDs - Lost

Answered by: 
Randy Carey

Question: 
When we issue a certificate of deposit we inform our customers that they will need to present the actual certificate to make any withdrawal or close the account. If they are unable to present the certificate, we require a loss indemnity form but only require one of the account holders to sign it, unless the account agreement stipulates otherwise. Should we have all the account holders sign the lost indemnity form regardless? We were also curious if anyone charges a fee for this processing?
Answer: 

Unless you are issuing negotiable certificates of deposit, whatever you are doing with indemnity agreements is a waste of time. A piece of paper that says certificate of deposit on it in today's day and age is nothing but a receipt, like any other deposit receipt given by the bank. It is a meaningless piece of paper and the financial institution's records serve as the record of the account like any other savings or checking account.

First published on 01/26/2025

Filed under: 
Compliance
Filed under compliance as: 
Certificate of Deposit

Report a problem with this page

Search Topics