Certificate of Deposit

Archive for April, 2007

Question: Business law — Joint Ownership?

Suppose that a Certificate Of Deposit (CD) owned by two joint owners (with the right of survivorship) is given by one of the joint owners as security for a loan (without the other joint owner’s knowledge). Further suppose that the joint owner dies after defaulting on the loan.
Who has superior rights in the CD, the creditor or the other surviving joint owner?

Answer: In most jurisdictions, the surviving joint owner is the owner of the entire CD, but is subject to the lien. So if the loan is not paid back by other assets of the deceased, the lender may collect from the CD.

Question: On a brokerage Certificate Of Deposit, what does it mean when it says conditional puts- death of holder?

I am hoping it means your heirs can redeem the Certificate Of Deposit without penalty if you die before its maturity.

Answer: I think it means the automatically sell the certificate if you die.

Question: Employer not paying Salary & Documents?

I joined a firm in last week of Nov’06 and had to deposit original education & experience certificates with them. I went to Guwahati on 11 Dec and stayed there till 22 Dec’06, due to Slip Disc, in addition to inadequate infrastructure provided to me as promised for my stay in Guwahati I had to leave the company. The firm deposited 11,000/- in my account as an imprest out which I spent 3000/- for office use. After coming back I had a discussion with the MD of the firm and explained him in detail all the facts. He said, if you are willing to to leave the firm then no Medical Certificate / Notice is required. On 28 Dec’06 I submitted my resignation stating unability to continue due to medical problem. After partially recovering from illness in 5 months when I asked for my Certificates and Salary stating to adjust 8000/ from settlement, they are not returning the original certificates held by them and the salary for almost a month in addition to 550/ per day allw. as outstation allw.

Answer: First settle the accounts with them & ask these documents. If they still fail to return these then give then legal notice for taking legal action them for dishonest misappropriation of property i.e. your original documents both by criminal & civil cases (stating the complete facts upto date & their failure to act accordingly) to be filled against them at their risk & cost.

Investment Facts : What Is a CD?