Bankers Alliance Compliance Corner

Editor's Note: The following was submitted by Bankers Alliance. LBA, through its subsidiary Louisiana Bankers Service Corporation, has partnered with Bankers Alliance to give banks access to three compliance-related programs. Click here for more information.

Q: If an account has multiple POD beneficiaries on it and one beneficiary passes before the account owner, would the remaining POD beneficiaries receive the funds in the account upon the death of the account holder? In other words, none of the funds would be paid to the deceased POD's heirs? 

A: Estate law varies by jurisdiction but generally speaking, a POD beneficiary or a POD beneficiary’s estate only has a valid interest in account funds if the account owner predeceases them. In the event the account owner passes away and then the POD beneficiary subsequently passes away, then the POD beneficiary's estate generally has a valid interest in the account and the estate should receive the POD beneficiary’s interest. If the beneficiary predeceases the account owner, then the beneficiary generally has no interest in the account and that interest is divided between the remaining POD beneficiaries, if any.

Q: Can a large deposit hold be placed on a next day item (cashier's check) for the amount over $5,525?

A: Yes, Reg CC allows this for cashier's checks or treasury checks. Members commonly believe that they cannot place any exception hold on a cashier’s check but that is not the case. For large deposit holds specifically, as long as you're making the first $5,525 available by the next business day, you're allowed to hold the amounts in excess of that. (Click here to see in the Code of Federal Regulations.) Please see our Reg CC Funds Availability Reference Guide for more information on exception holds.

Q: We are planning on opening a loan production office. What are the signage requirements?

A: Not all loan production offices are the same, and the signage required is going to depend on which activities take place there. If you do not take deposits, the “Member FDIC” signage is not required, but it's still best practice. You will need the Customer Identifications Programs notice if you will be taking applications and the Equal Housing Lender notice. The Fair Credit Reporting Act notice is not technically required but is highly recommended. The Home Mortgage Disclosure Act Statement notice will not be required if the loan production office is not a branch. Lastly, all the employment disclosures (Equal Employment Opportunity Commission, federal wage, employee polygraph, Occupational Safety and Health Administration, Family and Medical Leave Act) are required as well. Our Bank Lobby Signage tool can assist in breaking down the general signage requirement and help determine which signs are needed in your loan production office depending on the activities that take place there.

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call (888) 353-3933 or email and ask for our Membership Team. 


Did you know that usury laws vary from state-to-state?

  • Usury laws set limits on interest rates for certain types of lending.
  • The laws prevent lenders from asking interest rates that could be considered unreasonable or predatory.

Did you know that an addendum is required if the physical address is not listed on the first page of the closing disclosure?

  • Closing disclosures may, at times, list a legal description or other identifying information in lieu of a physical address. 
  • When this practice is used, an addendum must be included that lists the property’s physical address.
  • This address should match the address on the appraisal and the special flood hazard determination.

Do you know why the loan purpose is so important on an application for credit?

  • If the purpose of the loan is not disclosed at time of application, it could lead to possible Truth in Lending violations.
  • The loan purpose effects required disclosures and their timing requirements.
Review Alliance, an independent group of compliance specialists offering banks deep-dive audits of their existing transactions, recommendations about program enhancements or guidance on future safety and soundness. Virtual Compliance Officer was added in 2020—a new shared service-model using bank-dedicated compliance officers; perfect for monitoring and guiding your bank remotely. To learn how to put them to work for your bank, call (833)-683-0701or email and ask for the Membership Team.

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