Certificate of Deposit from other Banks-Collateral

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Question:

A customer wants to pledge Certificates of Deposits from other banks as collateral for a loan at our bank. Where do I find forms and what are disclosures? $100,000 10years monthly payments set up like a mortgage payment.

Answer:

You would need a rock solid assignment from the other banks and most likely need to file a UCC under Article 9. Most banks will not grant this sort of assignment. You need legal counsel assistance to even to begin to pull this transaction off.

First published on BankersOnline.com 8/6/12