Pub. 3 2012 Issue 3

fall 2012 11 tion of cash. However, this coverage only applies when cash is transported by a company using an armored car, or when cash is transported by a bank employee. There is no cover- age under the bond if the armored car service stores the cash in its vault, or if the employee takes the cash home for the night and plans to deliver it to the branch the next morning. A robbery of the cash or destruction of the cash while at the employee’s home or while stored at the armored car service location is not covered by the bond. Some armored car services are offering a cash management service where the bank’s cash is stored in the armored car ser- vice vault and is used for delivery to the bank’s branches when needed. While this eliminates the armored car service from having to stop at the bank’s main location to pick up the cash, the bank needs to be aware that its Financial Institution Crime Bond does not cover the cash stored in the armored car service vault. If the bank enters into this type service, the bank needs to make certain the armored car service has insurance that is sufficient to protect the bank if a robbery of the armored car company’s vault results in a loss of all of the cash belonging to multiple banks. Cash being shipped by Fed-Ex, UPS, USPS, or by some other company or non-employee not using an armored car is not cov- ered by the Financial Institution Crime Bond. Some insurance is available through these entities at the time of shipment, but the terms of that insurance should be read and understood. Some banks still ship cash using the US Post Office in certain situations. The USPS does offer insurance on registered mail shipments for up to $25,000. The USPS has insurance rate schedules when items are in excess of the $25,000 limit, but the $25,000 limit still applies and no loss in excess of the $25,000 limit will be paid by the USPS. Always remember that cash should be transported by an ar- mored car service when practical, or should be transported by bank employees using as much secrecy as possible. Secrecy is of utmost importance when an employee transports cash. When cash is being routinely transported by the same employee on a regular schedule in a marked bank vehicle, it will become widely known that cash is being transported in a routine manner. When a crook learns of the routine, the crook can easily stop a bank employee with a minor fender-bender accident at a stop sign. The best way to prevent placing an em- ployee in such a vulnerable position is to use secrecy anytime it is necessary for a bank employee to transport cash. Q The Kansas Bankers Surety Company has been serving community banks for over 100 years and is rated A++ (Superior) by A.M. Best For more information, please give us a call at (785) 228-0000. In addition, a number of other individuals may qualify for relief under the Act, including persons who are secondarily liable on an obligation, including a surety, guarantor, en- dorser, accommodation maker, or co-maker; citizens serving with allied forces; members of reserve components ordered to report for military service; and persons ordered to report for induction under the Military Selective Service Act. By understanding which individuals are covered by the Act, your business will be able to ensure the protections of the Act, which we will discuss in our next article, are pro- vided to the servicemembers serving the country on active duty, and, thus, you will be able to limit potential exposure for liability and help reduce risks to your business. Q Q Civil Relief Act — continued from page 8 Resourceful. Responsive. Reliable. Celebrating 25 Years as Your Strategic Partner, Never Your Competitor 804.239.0452 www.CBBonline.com Angela L. Beblo is a Senior Attorney at Spilman Thomas & Battle, PLLC. Her primary areas of practice are consumer finance, litigation and mine safety law. Contact Angela Beblo at 304.340.3852 or abeblo@ spilmanlaw.com . Brienne T. Marco R. Barry is an Associate at Spilman Thomas & Battle, PLLC. Her primary areas of practice are consumer finance and general litigation. Contact Brienne Marco at 304.720.4060 or bmarco@ spilmanlaw.com .