|
Information
> This page
U.S. Certificate of Deposits
(CD's)
Certificate of Deposits (CD's)
- outside of USA, these are usually referred to
as 'Fixed Deposits' - Raise a 'Credit Line' against them or 'Cash' them
out right.
The
'Value Conversion' depends on many factors, some fixed, some floating
such as
-
Type of CD (time, maturity
date, ownership, value, etc.)
-
Issuing Bank Rating
as well as location (branch) of U.S. Bank
-
Physical Location of
the Original CD - Safety Deposit Box, Corporate Office Safe, Home,
etc.
-
If an Agent, Security
House, or Third Party Bank is Holding the CD's
-
CD's Must be Clean and
Clear - No Encumbrances or Liens
-
Market Conditions
-
Bank Policy
-
Currency Fluctuation,
if wanted converted to other than US dollars
-
Client Anticipation
of Return
-
Place Transaction Occurs
What is done with "Cash" after conversion
This is becoming a paramount
issue with banks converting the instrument, the preferred and acceptable
method is to deposit a portion of the redeemed funds with the honoring
bank, usually not less than 20% for a period of not less than six (6)
months.
Hints
-
Most CD's are usually
issued to individuals.
-
CD's may be held by a
trust, foundation, endowment, corporation, or nonprofit entity.
-
It is often easier to
raise a 'Credit Line' than convert the instrument to CASH!
-
Fluctuating World Market
Conditions set the pace and determine the trading value, if any.
-
Usually most every instrument
can be converted, however, some are just Not desirable Trading Instruments
on the current World Market.
-
Certain Required "Documentation'
is needed for this type of transaction.
Recommended further reading:
Certificates
of Deposit: Large Negotiable Certificates of Deposit
Certificates
of Deposit: Advantages of certificates of deposit (CDs)
Certificates of
Deposit Offerings
Certificates
of Depoist: Utilizing foreign fixed deposits (CD's) for credit lines
|