We have a consumer loan for a small amount secured with a bank CD. The CD matures in January 27, 2010 but the loan matures February 27, 2010. We have a Hold on the CD until February 27,2010. Are we secured? Can we hold the CD after maturity?

Check to see if the CD is eligible for automatic renewal at maturity. If not, I would say the customer has 10 days from 1-27-10 to come in and renew the CD (just transfer the hold if a new account number is assigned; don't remove the hold).

I assume your CD is governed by Illinois law, because in most states you would not have a perfected security interest, but Illinois was on of the smart states the removed the problem in Article 9.