RSK.IQ Archives • Page 55 of 122 • RSK Compliance Solutions LLC

RSK.IQ Question of the Week 10/2/2017

Posted on October 2, 2017September 29, 2017 by RSK.IQ.Staff

Flood Insurance Coverage for Residence with Attached Garage

Issue/Inquiry

The Bank is making a $480,000 loan secured by a two-story residence and a detached two-story garage with upstairs rooms that are being used for living purposes. The insurable cost of the residence is $350,000, while that of the garage is $225,000, for an aggregate insurable value of $575,000. The residence and garage are connected by a roof. What is the appropriate amount of flood insurance coverage? Would separate flood insurance policies be necessary for each structure?

RSK.IQ Question of the Week 9/25/17

Posted on September 25, 2017September 26, 2017 by RSK.IQ.Staff

Verifying the Identity of a Foreign Signatory to a Business Account

Issue/Inquiry

A business entity wants to open a deposit account with the Bank, and provides a certificate of formation along with the EIN. The individual who will be the authorized signer is not a U.S. citizen and is only able to provide an IRS Individual Taxpayer Identification Number (“ITIN”) for himself, a Maryland driver’s license, and Mexican passport. The Bank believes that possession of an ITIN does not authorize a non-citizen to work in the U.S., and that an individual would need a work visa or SSN that was issued for “work purposes only”. How can the Bank verify that a non-resident alien is here in the United States lawfully?

RSK.IQ Question of the Week 9/18/17

Posted on September 18, 2017September 26, 2017 by RSK.IQ.Staff

Flood Insurance for Fixtures and when Contents are Owned by a Tenant

Issue/Inquiry

The Bank has made a loan to two business entities: Borrower A, who owns the commercial building securing the loan, and Borrower B, who is a tenant of the building and operates an auto repair business. Both borrowers have pledged business assets as additional collateral. Borrower A’s business assets are only the fixtures of the building, while Borrower B’s business assets include equipment and inventory in the building. The building is in a Special Flood Hazard Area (“SFHA”). Is flood insurance contents coverage required for the business assets of both borrowers?