Bank Safe Deposit Box won't allow coins to be stored

I rented a safe deposit box at a local California bank.

After filling out the paperwork and accepting the keys, the bank teller gave me a printed list of rules called "SAFEBOX REGULATIONS".

It contained the statement:

The box is leased solely for the purpose of keeping securities, jewelry, valuable personal papers and precious non-currency metals, and the Renter agrees not to use the box to store money, coin or currency or to store any property of a liquid, corrosive, pressurized, hazardous, explosive, dangerous, illegal, perishable, and/or offensive nature, including but not limited to any firearm, weapon, acid, illegal drug, contraband or evidence of any crime, or any object, material or substance that may become a nuisance to the Bank, its employees or agents or any of its Renters.

I asked two bank workers about this statement.
One replied that it was "Ok to store coins" but wouldn't put that in writing.
The other wondered "what the problem was".
Both bank workers were in their 20's.
One called someone outside the building but couldn't get an answer.

Has anyone else seen anything like this?

 

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I believe this statement is in there to protect the bank in the event that the gov't finds that some drug dealeror other criminal type is using their safe to protect his profits without depositing it into an account, which would be reported.

just my opinion, I could be wrong,

Ziggy

 

Haven't you received enough answers to the exact same question you posted on eBay? Is there another agenda here?

http://forums.ebay.com/db1/thread.jspa?threadID=2000387971&tstart=0&mod=1182594001334

 

This is the first time I've seen the question and it would lead me to believe that if anything came up missing the bank couldn't be held accountable. I would use another bank...

Ben

 

I am not sure if it is the same in the US, but in Canada the banks have a very similiar policy and it was designed to prevent money laundering by preventing people from storing large amounts of money in their safety deposit box. But since most of the time people at the bank have no idea whats in the box, I think the rule is really designed to protect the bank just incase a client is storing money in the box for the purpose of money laundering.

 

The reason for banning currency is fairly simple.
In the event of the death of the owner, the safe deposit box is opened with witnesses, including a representative of the state.
Any currency that is found in the box is automatically 'assumed' to be unreported income and you (or the estate) will be taxed on the unreported income.
However, coin collections, rare coins, etc are deemed to be collectibles and not subject to the unreported income statute.
BUT! (There is always a but).
In the event that the owner dies, and the box is deemed abandoned property, then the contents are added up (at face value) exchanged for cash, and the face value is listed as an account in the individual's name.
But, you say, I put $300 in silver dollars there, I want my coins back.
Tough, you get the face value back.
That, as they say, is the story, at least as it was when I was a branch manager for a bank, years ago.
(P.S. I never got the opportunity to open a box, even though I was there for about ten years.)

 

"Try another bank"

I'm wondering if all banks are using something like this now.
The note I received was printed in 2005.
I rented a box from the same bank before and did not receive such a note.
It specifically says coins; how many drug dealers keep their money in coins?

I did post this on other threads trying to get an answer but the threads were hijacked by "gold bugs", 1930's historians, and Roosevelt haters.

 

willieboyd:
Here is just a thought, why not write to the Federal Reserve?
Ask them if this is their policy.
Also, write to the bank's legal dept., just c/o their main office, and ask for clarification.

 

"how many drug dealers keep their money in coins?"

Well, Willie

Actually, more than you would think.
Not dimes, nickels and quaters ofcourse but tons of gold bullion (coins).
My cousin worked for the DEA and has mentioned on numerous occations of siezing stashes of gold bullion from house safes and safe deposit boxes.

The largest he seized was 25 rolls of $50.00 eagles.
$12,000 per roll equals about $300,000.

 

I don't know about street level guys...but I grew up here in Chicago with a couple of guys whose father's were in...ahem..."waste management". They both had huge collections of gold coins.

Sorry about the earlier crack willie...I went back and read your thread, and I see it did indeed get hijacked by the usual cast of characters over there. I apologize.

 

well...I would not go the safety deposit box route...it they wish, the government can seize what is in there as they did when it was made illegal to own gold in the US...and many people ended up losing most of thier gold as federal agents searched safety deposit boxes...

These arent as safe as they seem Get a nice safe and bolt it into the concrete in an out of the way place...they arent that terribly expensive and might even be less expensive in the long run compared to the rental of the box. I would never put my valuable in a box that is subject to being ransacked by the governmnet...call it paranoia but it has happened.

 

If you own your home buy a gun safe (they hold more anyway) and bolt it to the ground. Home Depot has a great deal on a quality gun safe right now, buy that thing (but be prepared to lift and move one heavy safe, bring a dolly). You'd be surprised at how much a gun safe will hold.

Maybe even put the safe at your parent's place or a brother's place (if you do not own your own house or want your stuff out of your own home).

 

There was an earlier thread in which it was made quite clear that NOTHING is insured if something happens to that bank or box. Insurance is your problem, not the banks. They are NOT responsible.

 

I say forget the bank and do what has already been said, get a safe and bolt it down. That way you can still look at your coins whenever you want.

 

As being an old antique Cartridge collector and a collector of antique guns, I can recommend that same advice... Having your own personal safe/safes is a much better idea...

And you can talk to your local police department about personal monitoring of those safes. I have it, and it gives me a real piece of mind...

And hide the keys/combination from your spouse! :whistle:

 

Can someone answer this question. If the IRS freezes your bank account can they also prevent you from having access to your safety deposit box?
I would assume that they can. The reason I'm asking this is because a few years back my sister and her husband had their bank accounts frozen by the IRS for several months. That was their personal and business accounts. As it turned out the IRS was after someone with the same first name and last name as my brother in law. It took several months to clear up the mess.

Lou

 

The plot thickens:

I received today a set of safe deposit box rules from another bank, coins are Ok here.

LIMITATIONS ON RENTER.
The renter can only put money, documents, valuables, or other similar property in the box.

 

funny one (maybe you ought to talk that over with Dr. Phil).

 

Lou:
The IRS normally, in the event of an account freeze, is after money, not valuables.
As your sister learned, there can be errors, as with her name.
However, unless there is a large liability or suspected criminal involvement, the lien is usually for bank accounts, and does lot request seizure of safe deposit boxes, nor their contents.
Congratulations to your sister, I know that it must have been hard on her to prove her innocence.