Question & Answer

Question: One of my customers wants to use his United States Savings Bonds as collateral. Can I accept them for that purpose?

Answer: No, savings bonds aren't legally permitted to be used as collateral for a loan or as security for the performance of an obligation. You'll find the answer to this and other questions about savings bonds under the FAQ section of Treasury's Savings Bond web page.

Copyright © 2000 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 10, No. 10, 10/00