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May 27, 2015
Compliance Management – Phase 1, your Program and Training
Andy Zavoina

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Integrated Disclosures 101
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50 Key Considerations for Integrated Disclosure Rules Readiness
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#1125526 - 02/06/09 06:06 PM cross pledge/cross collateralization questions
loan doc girl Offline
Junior Member

Registered: 06/29/04
Posts: 42
Loc: North Texas
This has become a really hot topic around here of late and it is giving us fits. Can anyone give me some answers or opinions?

First, are the 2 terms interchangeable? Some people say yes and others have said no.

Say you have 2 loans that are written up as having completely different collateral - how do you document a cross pledge of collateral? Do you do a security agreement/pledge for each loan? Or do you do the security documents only in the loan that they are primarily pledged to and put a c/p clause in the docs? (for instance - loan A has stock and loan B has accounts & equipment)

What if you have 2 loans that have the exact same collateral - do you put a c/p clause in those docs, or does it go without saying that they are c/p because you have security docs for each loan?

Same for real estate...you do a FLDT and SLDT, so is it redundant to say they are cross pledged? Seems to me that it is, but I don't know.

I know this is a lot of questions. Any input would be appreciated!
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Lending Compliance
#1125711 - 02/08/09 06:03 PM Re: cross pledge/cross collateralization questions [Re: loan doc girl]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 52935
Loc: Galveston, TX
You are asking questions that will be based on State law as to how to perfect interests in real property and those questions are best asked of your attorney.
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