WILFRED COUZIN, LAGUNA NIGUEL, CALIF.

Brenda Hale, marketing manager for American’s retail bank, says you knew, or should have known, that you were linked to an arbitrary rate. A wee-type disclosure accompanying the CD says, “The rate of interest on the account is established by the bank based on management discretion- a point she claims the sales-people always explain. You say no one told you that ,general market rates could rise but your “rising rate” CD might not. Hale argues that you did get an increase in December (up one tenth, to 4 percent) and that Americans matrix rate was higher than its competitors’. Big deal, when the bank kept a lid on a CD that it had promoted as having a chance of earning more.

Happily, you complained so much that the bank decided to respond. It broke your CD without penalty and gave you a new six month account at a higher rate. I hope that your fellow purchasers protested, too.

Q: In January I was terminated from York Luggage Co. In Lambertville, N.J., and offered six weeks of severance pay. That same day York filed a Chapter 11 bankruptcy petition. What Is the company’s obligation to pay my severance, two weeks of accrued vacation and outstanding expenses? And what about my pension and profit-sharing plans? I wrote York and asked about the plans but got no answer.

AYN SILVERMAN, NEW YORK, N.Y.

In a bankruptcy, secured creditors get their money first, because they have their mitts on company assets. Next come administrative expenses, like the fees for the lawyers handling the case (no pay, no play). Employees and outside salespeople come third, but only for certain priority payments. You can claim up to $4,000 earned prior to the bankruptcy filing, including vacation and severance pay. Your unpaid business expenses might also be included, depending on how the judge sees the law. For everything over $4,000, you join the general crowd of unsecured creditors. How much you get will depend on the value of York’s available assets.

I can see why you’re having trouble getting information. York said it would answer my written questions, but then it ducked. You’ve made a good move by getting a lawyer to write a letter asserting your claims. But even if you’re on the priorty list for a $4,000 payout, you’re unlikely to see the money before the end of the case, says bankruptcy attorney Alan Nisselsohn, a partner of Brauner, Baron, Rosenzweig & Klein in New York.

Pension and profit-sharing money is held separately, in trust, says David Preminger of Rosen, Preminger & Bloom in New York. It’s paid to former employees according to plan rules, without regard to bankruptcy issues. Your’re entitled to a copy of the plan, the latest financial report and your most recent benefit statement. Alas, that statement doesn’t have to be up to date.

Q: Is it ever advisable to pay off a home mortgage In one lump sum? I’m 72, retired, with $43,000 In bank savings and $5,000 in an Individual Retirement Account. I owe $17,000 on a small home worth about $65,000 and am currently paying 7.56 percent interest on a variable-rate mortgage. I don’t need my savings to live on.

K.W, COLUMBUS, OHIO

Q: I have enclosed copies of three stock certificates owned by my grandfather. None have signatures showing that he received payment. Can you tell me It they are of any value?

MICKEY SCHNELL, MYRTLE BEACH, S.C.

NOTE: Send your questions to Jane Bryant Quinn, NEWSWEEKFocus: ON YOUR MONEY, 251 West 57th St., New York, N.Y. 10019