Topic: Disaster Preparedness
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Does the CARES Act’s Employee Retention Credit apply to banks that have closed their lobbies? We have been paying numerous tellers and customer service representatives who didn’t work due to our reduced lobby traffic.
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We do not believe that the Employee Retention Credit is available to an essential business (such as a bank) on the basis of a voluntary suspension of the business or reduction of hours — although such a business may qualify for the credit on the basis of a modification of its operations in response to…
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Has the SBA released guidance on the procedures banks should use to request PPP loan forgiveness? We are familiar with the forgiveness application, but we would like to know more about the process for requesting forgiveness. For example, should we use the Capital Access Financial System (CAFS) or should we use the 1502 reporting process?
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The SBA recently released a procedural notice containing guidance for lenders related to submitting PPP loan forgiveness decisions. The SBA will provide a secure PPP Forgiveness Platform for PPP lenders to submit loan forgiveness decisions, supporting documentation, and requests for forgiveness payments. The platform is scheduled to go live on August 10, 2020. PPP Lender…
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We expect to begin receiving credit applications from individuals who are currently receiving unemployment benefits. Is there a way to verify how long an individual will continue to receive such benefits, and is there any documentation from the State they can provide with this information?
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To verify an applicant’s unemployment insurance (UI) benefits being administered by the Illinois Department of Employment Security (IDES), we recommend requesting a copy of their “UI Finding,” which indicates their weekly benefit amount (and dependent allowance, if applicable) and their maximum benefit balance. Generally, individuals in Illinois may not collect unemployment benefits for a period…
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Under the Governor’s current Executive Order that runs through June 27, 2020, is there a moratorium on turning over charged off deposit accounts to collection agencies?
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No, you are not currently prohibited from turning over charged off deposit accounts to collection agencies. However, debt collection has effectively been halted during the Gubernatorial Disaster Proclamations. Executive Order 2020-25 suspended the service of garnishment summons, wage deduction summons, and citations to discover assets during the duration of the Gubernatorial Disaster Proclamations. This Executive…
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We are considering reopening our lobbies. Can you recommend any resources on lobby protocols, such as floor markers, signs, masks, etc.?
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We recommend reviewing the Illinois Governor’s Phase Three Reopening Order (EO-38), the Department of Commerce & Economic Opportunity’s (DCEO) Phase Three Recovery Retail Guidelines, and the Illinois Department of Public Health’s (IDPH) Workplace Health and Safety Guidance for Employees and Staff of Businesses. EO-38 provides that businesses should: (1) ensure that employees practice social distancing…
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We learned that a customer fraudulently obtained an economic injury disaster grant from the SBA, despite not owning a business. The customer used the funds to purchase a cashier’s check that was mailed to a recipient who cashed it at an out-of-state bank. We learned of the fraud approximately one week after issuing the cashier’s check and put a stop payment on it. When the check came into our bank, we returned it due to the stop payment. However, the depository bank claims that it called our bank to verify the authenticity of the cashier’s check and was advised that it is valid. Are we liable for the cashier’s check?
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Yes, we believe your bank is liable for the cashier’s check. The Illinois Supreme Court has held that a cashier’s check is the equivalent of cash. As a general rule, once a cashier’s check enters the stream of commerce, the issuer (your bank) is liable under the Uniform Commercial Code (UCC) if it refuses to…
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Are we still prohibited from repossessing vehicles from consumer borrowers who are delinquent on their vehicle loan payments? If so, can you direct us to the relevant executive order? Also, are we prohibited from repossessing collateral from delinquent commercial borrows, such as semis and trailers?
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Please note that as of August 23, 2020, the portion of Executive Order 2020-16 referenced in our answer below has been rescinded by Executive Order 2020-48 (“Executive Order 2020-16 is re-issued in its entirety and extended through August 22, 2020, whereafter Section 1 shall be rescinded”). Yes, lenders still are prohibited from repossessing vehicles (including…
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Was the Executive Order restricting garnishments and other collection activity extended beyond May 29?
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Yes, on May 29, the Illinois Governor signed Executive Order 2020-39, re-issuing and extending Executive Order 2020-25 (restricting garnishments and certain other collection activities) through June 27, 2020. For resources related to our guidance, please see: Illinois Executive Order 2020-39 (May 29, 2020) (“Executive Order 2020-25 is re-issued in its entirety and extended through June 27, 2020.”) Illinois…
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Are there any discrimination concerns with asking some but not all customers to lower their face coverings before letting them enter a branch? We have some customers who are recognizable with face coverings on and some business customers who come in on an almost daily basis. We would write a policy that highlights these potential differences, and we would follow the policy consistently.
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A policy of asking some but not all customers to lower their face coverings before entering your bank poses some risk of potential discrimination issues. However, if you thoroughly document your basis for waiving this requirement for certain customers, follow the policy consistently, and follow the safety guidelines for requiring customers to lower their face…