CLOSING A MEMBER ACCOUNT

 

   

To close a member=s account:

 

     1.   Be sure that all loans are zero balance

 

     2.   Use the procedure for >CLOSING A SHARE TYPE ACCOUNT= to close each share type 

           individually. 

 

           Be sure to read the section that explains the results of closing a share type account.

 

THIS STEP IS VERY IMPORTANT TO INSURE THAT

TRANSACTIONS CANNOT BE POSTED,  DIVIDENDS ARE

PROPERLY PAID AND MONTH-END FEES ARE NOT CHARGED.

 

     3.   The account is now considered a >Probable= closed account.  Accounts are officially considered ‘CLOSED= when they are purged from the system.

 

 

PROBABLE CLOSED ACCOUNT

 

This account will appear on the >PROBABLE CLOSED ACCOUNT= listing which is created the first 2 months of the quarter, and also listings created via Program #36 Option G.  This indicates that all share and loan balances are 0.  The system assumes at this point that the account will probably be purged from the system (removed from Program #2) at the year-end unless there are extenuating circumstances.  (See below)

 

CLOSED ACCOUNT

 

At year-end this account will be purged from the system (not appear on Program #2 and not be listed on a >Share & Loan Listing=) and listed as >CLOSED= with the following exceptions:

 

1.  A draft account is kept on the system for 1 month after the last activity to be sure that all drafts have time

     to clear.

 

2.  If $10 or more in dividends have been paid to the account during the current year it must remain on the system until 12/31 so that an IRS form 1099 can be created.

 

3.  An IRA account must remain on the system until after April 15th of the year after it is closed due to IRS reporting requirements.

 

4.  A Real-Estate loan (Loan type >RE=) must remain on the system until 12/31 so that an IRS 1098 form can be created.

 

5.  If a payroll split still exists in Program #15 the system assumes the account is waiting for another payroll, and does not purge the account.

 

6.  If the >PERMANENT ACCOUNT= flag in Program #3 indicates >Y= the account will not be purged.