Pub. 7 2012-2013 Issue 1

www.nebankers.org 18 Extraordinary Service for Extraordinary Members. DEPENDABLE Nebraska banks are dependable financial partners in the communities they serve. We are here to support your services. Regulatory Consultation and Compliance Loan Default Remedies and Bankruptcy Representation Real Estate Purchase, Sale and Leasing General Business Representation Loan Origination and Workout Loan Participations Bank Mergers and Acquisitions Succession Planning for Owners Commercial Litigation Lincoln Omaha Denver www.woodsaitken.com Validation Stamp may be used, a bank cannot even guess the amount of the bank’s exposure or know who the bank may later have to indemnify. A bank may be asked to put a Sig- nature Validation Stamp on a type of document that the bank officer does not understand and could not possibly determine whether the signer had actual authority to sign that document. Youmight be swayed into joining the programbecause, for a small fee, a bank can, or must, purchase a Surety Bond for the Signature Validation Program. The Surety Bond protects only the persons who rely upon your Signature Validation Stamp. The Surety Bond is not insurance to protect the bank. The bank agrees in the same SVP Indemnification Agreement to indemnify and hold harmless the surety company if anyone makes claim under the Surety Bond. The surety company’s only risk is when someonemakes claimunder the Surety Bond and the bank is insolvent or otherwise cannot repay the surety company. There is no insurance to protect a bank for its loss that could result from the liability the bank agreed to take on by signing the SVP Indemnification Agreement. This Signature Validation Program is clearly a program that adds new liability for banks under the SVP Indemnity Agreement. I also investigated the requirements relating to U.S. Sav- ings Bonds to see if the government was requiring banks to join the Signature Validation Program. The government does not require any bank to join the SVP program. Federal regulations regarding U.S. Savings Bonds, spe- cifically, 31 CFR 353.55, require that signatures on certain   Banks Should Not Participate! — continued Make your opportunity a “done deal” ... fast! 3100 13th Ave. S., Fargo, N.D. | 800.450.8949 Member FDIC Participation loans (commercial, agricultural, construction, operating lines and term loans) Bank stock and ownership loans Bank building financing Business and personal loans for bankers Multi-family construction and long-term permanent financing Gene Uher Call us for quick response, competitive rates and flexible underwriting. Banks should be very wary of allowing the Signature Validation Program to grow because it creates a substantial new risk to banks.