Safe Deposit Box: Contracts, the Relationship, Compliance, and Risks

Gain a better understanding of safe deposit box regulatory compliance and how to successfully navigate unique risks and challenges.

This presentation is beneficial for all bank personnel and attorneys representing banks. It will provide an insight to understanding the relationship between a customer and the bank; the impact of that relationship; the duties of each party to the contract; and will provide a guideline as to what to do if there is a safe deposit box loss as the result of a criminal event, a catastrophic event, foreclosure on a safe deposit box, mysterious disappearance and unclaimed property. Understanding the relationship, the duties of each party to the relationship and the risk management in the event something unexpected occurs is vital for anyone associated with a bank including their branch personnel, lawyers, auditors and officers.

Agenda

The Contract

• A Bailment?
• Landlord/Tenant or Lessor/Lessee?
• Legal Liability to Customers
• Allowable Items in Safe Deposit Box - Practical Controls
• Insurance
• The Banks Insurance
• The Customer's Insurance
• Break-Open Procedures
• What Circumstances?
• Procedures to Follow

Loss Prevention

• Security
• Alarm System
• Vault
• Education and Training

Risk Management, Investigation, Claim Resolution

• Perils That Cause Safe Deposit Losses
• Insurance Coverage and Response
• Investigation
• Claim and Settlement Process