Date: Fri, 29 Sep 2000 13:43:03 -0400
From: Alfred Kraemer <akraemer_at_mcw.edu>
Subject: Time to re-assess risks of deposit accounts and prepayments?
I wonder if libraries are re-assessing the risks of deposit accounts and
prepayments (not prepayments that are required but those that are
optional) in response to recent developments which highlight the
vulnerability of deposit accounts if the vendor gets into financial
trouble.
While the outcome in the scenario that I alluded to is still unknown,
there is no question that we need to re-evaluate the risk of any type of
optional pre-payment method.
I'm referring to deposit accounts as well as those serials pre-payments
which are made months ahead of the actual due date.
1. Question:
Are those of you who maintain deposit accounts with commercial library
material vendors considering not to continue them?
If you are going to continue using deposit accounts are you planning to
handle them differently, e.g. not carrying large balances?
2. Question:
Do you anticipate a change in serials prepayments? (I'm thinking of
libraries that pre-pay serials vendors months ahead of the date the
payment is due in order to gain interest, etc).
I apologize for any duplication if these questions have been discussed
recently on this list.
Thank you.
Sincerely,
Alfred Kraemer
Head, Technical Services
Medical College of Wisconsin Libraries
8701 Watertown Plank Road
Milwaukee, WI 53226
Phone: 414-456-4273
E-Mail: akraemer_at_mcw.edu
Received on Wed Oct 11 2000 - 11:25:51 EDT