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Path: utzoo!linus!decvax!harpo!floyd!clyde!ihnp4!inuxc!pur-ee!uiucdcs!smu!leff
From: leff@smu.UUCP
Newsgroups: net.invest
Subject: money market account and signature g - (nf)
Message-ID: <4180@uiucdcs.UUCP>
Date: Sun, 27-Nov-83 22:58:26 EST
Article-I.D.: uiucdcs.4180
Posted: Sun Nov 27 22:58:26 1983
Date-Received: Wed, 30-Nov-83 01:35:33 EST
Lines: 70

#N:smu:20700002:000:3738
smu!leff    Nov 27 11:05:00 1983

I had a trauma with Dreyfus Liquid Assets regarding IRA's, signature
guaranty's etc.  It might be of interest since it probably applies to
most of these money market funds.

When I was comeing here from New York, I sent Dreyfus a letter saying
I would like the balance of my account as a check.  I wanted some
extra money in case there were some special funds.  I received the
check and gave it to the bank down here to cash.  About fourty 
days later, my bank calls me telling me that Dreyfus  refused to honor
the check as there was no signature guaranty.  A signature guaranty 
is a guaranty from a commercial bank, a savings bank associated with
Automated Checking House (or something like that) or a registered
broker.

My questions are:
  a. how does one go about getting such a signature guaranty if one doesn't
     do business with the any of the above institutions.
  b. had I written a Dreyfus money market check for that amount or
     greater they would have cashed it.  What is the difference between
     my writing my name on a Dreyfus money market check and the
     number $1000.00 and signing a check they gave me for $1000.00.
  c. why didn't they simply refuse to send me the check if there was
     no signature guaranty on the original letter instead of giving me
     a check that would bounce.  That could have been quite embarassing.

In any event, I had gotten myself settled and decided the money would
be best put in an IRA.  I assumed that the check was in limbo since I
got some computer generated letter from their president saying that my
balance was zero and that they would hold open my account for a year 
so I could think about putting money in it.  I thus sent them a letter
with a) a check from my account back in New York to put in m new IRA 
account, b) another such check to put in a new Keogh (I earned some money
as a consultant) and c) instructions to retrieve the money from limbo
and add it to my IRA.

A little while later I got a call from a Mark Lacombe at Dreyfus saying
that I couldn't open up a Keogh since it was already after the year end
and they were sending me back a check.  He also was having someone look
into the money in limbo matter.  I then sent him a letter thanking him
for his time and reminding him to follow up on the money in limbo
situation.

I never heard from them again and my mother got upset when she got a
statement saying that the $1000.00 that was in limbo was now back in
my original account.  She contacted Mark Lacombe back at Dreyfus
who said the money was still there since there was no signature
guranty on the request for a transfer.  (Why do they need a signature
guaranty to transfer money from IRA status from non-IRA status!  Its the
same damn company. (Sorry for the flames.))

I simply wrote out a Dreyfus check from non IRA account to IRA account
sending it to Dreyfus 
and settled the whole matter without any further ado.

Moral:
I found out from someone who is experience in these matters the best
way to close out an account in a money market 
fund is to write a check for almost the same amount as that is in the
account.  You can never get it exact as the interest is compounded
daily.  Then send them a letter asking them to send you the two or three
dollars that is left.  He said that they will send you a small check
without the check guaranty requirement.  If you don't send them such
a letter they will send you a letter every six months reminding you that
you have a very small balance and would you please put some more money
in it.  In two years they will send you a check anyway.  (I put some
additional money in the non IRA account later so that didn't become
a problem so I have no way whether to verify those last claims.)