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U.S. Certificate of Deposits
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
'Value Conversion' depends on many factors, some fixed, some floating
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,
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
if wanted converted to other than US dollars
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)
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.
Recommended further reading:
of Deposit: Large Negotiable Certificates of Deposit
of Deposit: Advantages of certificates of deposit (CDs)
of Depoist: Utilizing foreign fixed deposits (CD's) for credit lines