Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network



December 3, 2014
Overdrafts: Latest Regulatory Feedback, Guidance & Best Practices Webinar
David Dickinson and Jerod Moyer

December 4, 2014
Freebies, Bonuses and Contests
John Burnett and Andy Zavoina

December 9, 2014
Bankruptcy: Creditor Do's and Don'ts
Sam Ott

December 10, 2014
Branch Audits: What Is Going On Out There?
Patricia Cashman

December 17, 2014
Integrated Disclosures - An Implementation Strategy
Mary Beth Guard and Jack Holzknecht

December 18, 2014
Loan Review Best Practices for a Community Bank
Bob Fritzlan

December 19, 2014
PREPAID PRODUCTS - Understanding the CFPB Proposal
John Burnett



Topic Options
#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!
_________________________
If you can't be a good example then at least you can serve as a horrible warning.

Top
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: 50642
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.
_________________________
The opinions expressed are my own, take them or leave them.

Top


Moderator:  Andy Z