A recent audit revealed that the bank’s personal trust division was failing to determine whether securities being accepted from new trust customers have been reported as lost or stolen. To address the root cause of this problem, what should the…
Transactions with which of the following government securities would NOT subject a bank to the registration requirements of the Government Securities Act? A. Obligations of the Farm Credit System B. GNMA securities C. U.S. Savings Bonds D. FNMA obligations
In which of the following situations is the bank NOT required to report lost or stolen securities? A. When bonds were expected to be delivered in person from the local Federal Reserve Bank and were not received B. When stock…
Jayne Logan, a loan officer at State National Bank, has recently recruited Mr. David Roberts as a new loan customer. She has known Mr. Roberts for 10 years and handled his lending transactions at another bank where she previously worked.…
Generally, a financial institution is required to ascertain if securities certificates they have taken by pledge, transfer, or otherwise have been reported as missing, lost, counterfeit, or stolen. When is it NOT required to take such actions? A. When the…
How long after discovery does a bank have to report any lost or missing securities when criminal activity is suspected? A. 90 calendar days B. 1 business day C. Never. Law enforcement must report D. 10 business days
A compliance officer receives a call from a loan officer who asks for advice on what she should do with a stock certificate (1,437 shares of IBM) from a new loan customer who wants to pledge it in support of…
Under what circumstances will a G-FINW (a withdrawal as a government securities dealer) become effective in less than 60 days? A. If the bank requests a shorter time period B. If the regulatory agency determines that a shorter time period…
Which of the following actions is NOT a custodial requirement of the Government Securities Act? A. Keeping possessory government securities in a vault with dual control access B. Segregating government securities from bank assets C. Keeping government securities free of…
A bank that is a government securities broker accepts money from a customer for the purchase of securities on Monday and does not purchase the securities by the end of the day on Tuesday. Does the bank have any responsibilities…