Estate of James Waldo Hendrickson - Page 14




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               Security at Peoples was antiquated.  Despite a number of                
          bank robberies in the area, Peoples had little protection from               
          armed robbery or burglary.  Security at the bank consisted of                
          glass doors that could be locked and two 1960's vintage still                
          image security cameras.  Peoples did not employ security guards              
          or arm its employees and did not have a central alarm system.  In            
          the event of a robbery, Peoples did have a system in place to                
          activate a silent alarm that would notify the sheriff if bait                
          money should be removed from a teller bay.  However, at the time             
          of decedent's death, the physical cash was not carefully managed,            
          and tellers frequently kept as much as $80,000 in their cash                 
          drawers.                                                                     
               3.   Franklin Loan and Savings Association                              
               On the valuation date, the Franklin Loan and Savings                    
          Association (Franklin) was affiliated with Peoples.  Franklin did            
          not have its own facilities or employees and used those of                   
          Peoples.  Franklin paid Peoples for employee time used, along                
          with an annual rent of $600.                                                 
               4.   Depository Accounts                                                
                    a.    Checking Accounts                                            
               On the valuation date, Peoples offered "free" checking                  
          accounts that really were free.  There were no monthly charges,7             


            7 Peoples charged a fee on dormant accounts as provided by                 
            State law.                                                                 





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Last modified: May 25, 2011