Topic: Record Retention
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What is the record retention period for BSA 314 reports?
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There are no specific record retention requirements as to retaining records related to 314(a) requests. However, the FFIEC BSA/AML Examination Manual states that “documentation that all required searches were performed is essential.” It recommends printing off “search self-verification document for each 314(a) subject list transmission” and a “Subject Response List.” It also notes a financial…
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For how long should we retain documents related to charged off loans?
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The IRS Form 1099-C instructions (for the form is used to report loan cancellations) state that “you must retain a copy of that form or be able to reconstruct the data for at least 4 years from the due date of the return.” Otherwise, we are not aware of any Illinois regulations that directly address…
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What are the record retention requirements for safety deposit box contracts or signature cards? Is there a requirement or a recommendation?
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Generally speaking, the statute of limitations for written contracts in Illinois is ten years. 735 ILCS 5/13-206. Consequently, you may wish to retain your safety deposit box contracts and signature cards for ten years after the termination of the contract.
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How long should we keep records for insurances policies?
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The appropriate record retention period for an insurance policy depends on the type of policy — occurrence-based vs. claims-made, first-party vs. third-party, primary vs. secondary. It also depends on the statutes of limitations for the types of claims that the policy covers.
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I understand that record retention laws dictate retention periods, but are there any laws that govern retention periods for original documents (rather than copies or electronic versions)?
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We do not believe that you are required to keep the original versions of any documents if you choose to store them electronically. The Illinois Financial Institutions Electronic Documents and Digital Signature Act states that if a bank keeps documents in electronic form in the regular course of business, then an electronic version of a…
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Are the ordinary record retention requirements for loan documents extended if they are involved in a foreclosure or other litigation?
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Yes, we would recommend retaining documents used in foreclosures or other litigation beyond the ordinary record retention periods. If a foreclosure proceeding or litigation commences, we recommend using the retention period required by HUD: “If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record…
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Does Illinois have a statute of limitation for enforcing certificates of deposit?
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Illinois has retained the UCC limitations period. UCC Section 3-118, subsection (e), states: An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within 6 years after demand for payment is made to the maker, but if the instrument states a due date and the…
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What employee records should a bank retain after an employee leaves the bank, and for how long should we keep those records? We have approximately 25 employees (full- and part-time).
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Below is a list of laws that may be relevant in developing employee record retention policies. The application of the laws may depend on the number of employees at your bank; we believe that the laws below would apply to an institution with approximately twenty-five employees. Illinois contract law: Generally speaking, the statute of limitations for…
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What are the record retention requirements on Freddie Mac servicer statements?
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The Freddie Mac Single-Family Seller/Servicer Guide requires servicers to retain mortgage files for seven years after the mortgage is satisfied. Section 52.3.
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Are Illinois notaries required to log all internal bank documents (mortgage releases, etc.)?
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Notaries are not required to log internal bank documents related to a residential mortgage, but they must log documents that are considered “documents of conveyance” of residential property. The Illinois Notary Public Act requires all notaries to keep a Notarial Record of any “document of conveyance” that transfers residential property (defined as a building or…