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#12615 - 08/10/01 04:27 PM CD collateral
Cathyec Offline
New Poster

Registered: 08/10/01
Posts: 2
Loc: Joliet, IL, USA
Consumer loan taking on us CD as collateral. How to perfect our position - possession of CD or filing with the state.

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Article 9
#12616 - 08/11/01 03:12 PM Re: CD collateral
Andy Z Offline

10K Club

Registered: 10/27/00
Posts: 25208
Loc: On the Net
Admittedly I have not studied RA9, but it is my understanding that possession is required in this instance.

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Andy Zavoina
Opinions stated are not necessarily that of my employer.

_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#12617 - 08/11/01 03:13 PM Re: CD collateral
Andy Z Offline

10K Club

Registered: 10/27/00
Posts: 25208
Loc: On the Net
Was a double post.

[This message has been edited by Andy Z (edited 08-11-2001).]

_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#12618 - 08/13/01 08:22 AM Re: CD collateral
BeechFlyboy Offline
Power Poster

Registered: 10/27/00
Posts: 5056
Loc: Soaring over Georgia
UCC-9 does not apply to this situation (nor to any consumer purpose deposit secured transaction). This doesn't mean that the lien cannot be perfected, it just means that perfection is not specified under the UCC. It becomes a matter of state statutory and case law. I'd suggest you contact your bank counsel and request information about consumer deposit account lien perfection.

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Jim Bedsole, CRCM, CBA, CFSA

Opinions expressed are my own, and do not necessarily reflect those of my employer.

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Jim Bedsole, CRCM, CBA, CFSA
My posts - my opinions

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#12619 - 08/13/01 10:06 AM Re: CD collateral
Andy Z Offline

10K Club

Registered: 10/27/00
Posts: 25208
Loc: On the Net
In the past (pre RA9), it was recommended to us by counsel that CD secured loans have a UCC filed on them.

My point, made more clearly by Jim, is that possession is required and a UCC is not required for filing.

If you are in a state still under the old rules, a UCC could be necessary.

------------------
Andy Zavoina
Opinions stated are not necessarily that of my employer.

[This message has been edited by Andy Z (edited 08-13-2001).]

_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#12620 - 08/31/01 01:18 PM Re: CD collateral
Jack/Pegasus Offline

Gold Star

Registered: 08/31/01
Posts: 327
Loc: Out back wetting a line.
A big problem under Article 9 is figuring out whether a "CD" is an instrument, a general intangible, or a deposit account which is perfected by filing, possession or control. Some depository institutions issue CDs, others provide what amount to a time deposit account agreement. Either have counsel determine the correct category or perfect every way possible.

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#12621 - 09/04/01 04:28 PM Re: CD collateral
PABanker Offline
Gold Star

Registered: 12/20/00
Posts: 491
Loc: Blue Ball, PA 17506
You may want to review your Deposit or CD Agreement(s) on that issue. As ours addresses this issue as the bank must approve this actionas it abides by State UCC.

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