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April 24
BSA/AML Compliance: Writing the SAR Narrative
Ken Golliher

April 29
HSA Basics
Whitney Johnson

April 29
Required Training for Loan Originators
Mary Beth Guard and Jack Holzknecht

May 13
Overdraft Practices in Today's Regulatory Environment
John Burnett

May 14
Reg E Claims - Allocating Liability Correctly
Andy Zavoina

May 15
Managing Electronic Information - From A to Zettabyte
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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: 48565
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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The opinions expressed are my own, take them or leave them.

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