Submitted by nmirchev8
In the current implementation each safe has corresponding proxy contract inside ODSafeManager and corresponding SAFEHandler proxy which is deployed for each safe and used as safes address inside SAFEEngine.
The problem is that inside ODSafeManager transferCollateral() function there is no check wether the provided address is a valid safe and so the collateral could be transferred to any ordinary address.
This could result in contracts missbehaviour, or lost of funds as it breaks the invariant of Each safe has a corresponding SAFEHandler and so other accounting errors could appear as the new owner of the contract can transfer it where he wants directly calling SafeEngine.sol contract, which is also unwanted behaviour (To execute safe operations, bypassing SafeManager.sol)
The issue is confirmed by sponsor, who suggested adding in a safeHandler exists check. 
pi0neerpat (OpenDollar) confirmed
MiloTruck (Judge) commented:
hals (Warden) commented:
MiloTruck (Judge) commented:
nmirchev8 (Warden) commented:
daopunk (OpenDollar) commented:
MiloTruck (Judge) commented:
