SECURITIES BOOK. Securities, of what ever nature, which are left to cover an advance, are entered in the securities book. A page is headed with the name of the customer, his address and designation, and underneath are detailed the deeds, certi ficates, bonds, life policies, guarantees and all other securities. Sufficient information is given regarding each different item to enable anyone to judge, without a reference to the securities themselves, of what the security actually consists. In the case of deeds, it is customary to quote the date of the last principal document and the name of the person to whom the property belongs, and to state whether the property is freehold, leasehold or copyhold. Where the property has come by will to the person lodging the security, particulars of that fact are given. The quantity of land, with the number and nature of any buildings thereon, and the amount of the consideration money, with the date, are set forth, and information is given as to the nature of the charge (mort gage, or memorandum of deposit) which the bank has upon the property. Any prior mortgage, or charge, or any flaw in the title, or anything with regard to the property which may in any way affect the value of the security to the bank, are duly noted. The probable present market value of the property is given, and also the rentals or other information which may help to prove the estimated value. In leasehold property the number of years of the lease, and the ground rents are stated, in addition to the above information, and in copyhokl property the amount of the fines and fees. Where there is insurable property particulars of the fire policies held are entered.
Full particulars of all certificates lodged are given, including the number of shares, the name of the company, the designation of the shares (or stocks, the nominal amount and the amount paid up, the name of the person which appears on the certificate, the present market value, the rate of dividend, and the nature of the charge which the bank holds.
With regard to life policies, the particulars which are usually entered in the securities book are, the name of the company, the number of the policy, the amount and when payable, the amount of the premium and the date on which it is payable, the name of the person in whose favour the policy is granted, the amount of accrued bonuses, the present surrender value, a note of any charge upon the policy, and particulars of the assignment of the policy to the bank, and the acceptance by the company of notice of the assignment.
Other forms of securities are entered in a similar way so as to give full information as to the nature of the security and its probable value. In the case of guarantees, recent reports upon the sureties must be given.
When securities are deposited, it is the practice in some banks for the depositor to sign the book in which they are entered, or where a receipt is given by the banker from a counterfoil book, to sign the counterfoil. When a security is given up, the receipt of the person who lodged it is obtained against the entry in the book, or a separate receipt is taken and a reference made to it in the securities book.