Our bank is considering offering loans to purchase co-op residential units. The collateral for these loans would be the occupancy agreement between the co-op association and the buyer and a certificated share in the association. Am I correct in my understanding that rather than a mortgage being filed with the county using the PID, that a UCC filing would be done on the certificated share and the occupancy statement. And that all loan documents would otherwise be the standard real estate documents. Any help would be greatly appreciated.

In which area of the country are you located? I am located in the Atlanta area and I just heard about these about six-months ago (but I can remember which bank was contemplating them). Do you see these as a national trend? (something to do with babyboomers getting rid of their single-family houses?)
I would think these would be fairly common on the East Coast (NYC?) and I'm sure you will get some response from them.

Good luck.

The co-op owns the building, and the residents own the co-op. Yes, the co-op is shares of stock. There are UCC filings and guidelines for documenting the share ownership, you need to get financial documentation from the co-op, etc.

There are co-ops authorized in many different states, and like most regulations, they are slightly different by state. You may want to check with an attorney familiar with co-ops in the state you're going to be dealing with.

I do not believe the original poster's question was answered, and maybe it can't be because it may be state-specific. But the question was:

"Is it correct that rather than a mortgage being filed with the county using a PID (Property Identification Number), that a UCC filing would be done on the certificated shares and the occupancy statement?"

There must be somebody out there that knows this answer. As we all search for new opportunities to make dough, this lending product may be in our futures, so we might as well try to get a few of the basics down now.