We are having a discussion in our Bank regarding certificates of deposit issued to "Mr. OR Mrs. John Doe." Mr. John Doe comes into the Bank and pledges their CD as collateral. As a general practice, we also require Mrs. John Doe to sign a third-party pledge. I cannot find in the UCC where this is required; however, in our CD Terms and Disclosures it states: "Any pledge of this account (to which we have agreed), must first be satisfied before the rights of any joint account survivior." This tells me that Mrs. John Doe should also agree to the pledge - satisfied by the third-party agreement.

Any thoughts on this?

Thanks,

Lisa

You will not find your answer in the law. It is case law and wisdom that encourages such practices. I could tell you a story but is it too long.