Internal Control Questionnaires and Verification Procedures

Custody of Securities

1. Do procedures preclude the custodian of bank securities from:

   1. Having sole physical access to securities?

   2. Preparing release documents without the approval of authorized persons?

   3. Preparing release documents not subsequently examined or tested by a second custodian?

   4. Performing more than one of the following transactions: (1) execution of trades, (2) receipt or delivery of securities, (3) receipt and disbursement of proceeds?

2. Are securities physically safeguarded to prevent loss or unauthorized removal or use?

3. Are securities, other than bearer securities, held only in the name of the bank?

4. When a negotiable certificate of deposit is acquired, is the certificate safeguarded in the same manner as any other negotiable investment instrument?

Previous: Policies Next: Investment Securities Records