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.