Community Bankers' Advisor

i  March - April, 2003

Page 3 


Affidavit of Forgery

If a customer catches forged checks when reviewing a bank statement or by other means, an Affidavit of Forgery is called for. An "Affidavit of Forgery" is a notarized sworn statement attesting that the signature which appears on the questioned document is indeed a forgery, and not authorized by the account holder. We suggest that you obtain an Affidavit Forgery from the account holder; an affidavit should accompany each forged item. If you have 10 forged checks, you should obtain 10 affidavits. The affidavits should be retained in the file, both for your records and because the state's attorney will most likely require an affidavit of forgery for prosecution.

Sample Affidavit of Forgery

STATE OF NORTH DAKOTA )
)
COUNTY OF __________ )

I, (insert name of customer), being first duly sworn upon oath, do hereby swear and affirm as follows:

That I have been informed that what purports to be my signature appears on the following check(s) OR draft(s) as the maker or indorser:

CHECK NUMBER (or draft number)
DATE ON ITEM
PAYEE
AMOUNT

That I did not sign the check(s) or draft(s) listed above either as maker or indorser.

That the signature that appears on the instrument(s) described above is not my signature, but is instead a forgery made without my knowledge and without my approval.

That I did not participate in the negotiation of the check or draft, nor did I receive the proceeds therefrom.

The information I have regarding the forgery, how it may have occurred, and who may have participated in the making of the forgery, is as follows:

Further your affiant sayeth not.

Signed: ______________________

 

On this _____ day of __________, 2003, before me, the undersigned, notary public in and for said county and state, personally appeared ____________, known to me to be the same person who is described in and who executed the above and foregoing instrument and acknowledged to me that he/she executed the same.


_____________________________
_________________, Notary Public
For the State of North Dakota
My Commission Expires: ________

Reg B Final Rule Published

On March 5, 2003, the Federal Reserve Board announced that it is publishing a final rule amending Regulation B, which implements the Equal Credit Opportunity Act. The Board approved the final rule at its meeting on February 19, 2003.

The ECOA prohibits creditor practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); to the fact that all or part of the applicant's income derives from a public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The

regulation also requires creditors to notify applicants of action taken on their applications; to report credit history in the names of both spouses on an account; to retain records of credit applications; to collect information about the applicant's race and other personal characteristics in applications for certain dwelling-related loans; and to provide applicants with copies of appraisal reports used in connection with credit transactions.

Among other things, the final rule addresses the collection of applicants' personal characteristics in connection with non-mortgage credit and record retention for pre-screened solicitations. The final rule amending Regulation B is effective April 15, 2003. However, to allow time for any necessary operational changes, the mandatory compliance date is April 15, 2004.

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COMMUNITY BANKERS' ADVISOR is designed to share ideas and developments related to the field of banking. It is not intended as legal advice and nothing in the COMMUNITY BANKERS' ADVISOR should be relied upon as legal advice in any particular matter. If legal advice or other expert assistance is needed, the services of competent, professional counsel should be sought.

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