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#1746418 - 10/03/12 08:29 PM "hypothecation Agreement"
Patricia Offline
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Joined: Mar 2011
Posts: 327
Kansas
Bank policy is to obtain a new Flood Determination on all renewals for commercial loans with RE as collateral. I am looking at a Commercial RE loan and the bank took a Hypothecation Agr for a commercial bldg. My question is does the RE taken as collateral in the hypothecation Agreeement trigger the bank to obtain a new determination?

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Flood Compliance
#1746498 - 10/04/12 07:52 AM Re: "hypothecation Agreement" Patricia
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
Collateral pledged via hypothecation agreement is no different than any other collateral securing a loan. A determination should have been obtained when the collateral was taken and all ordinary rules apply at renewal of the loan. If bank policy is to obtain a new determination on all renewals, this would be no different just because the documentation involved a hypothecation.
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#1746543 - 10/04/12 01:18 PM Re: "hypothecation Agreement" Patricia
Patricia Offline
Gold Star
Joined: Mar 2011
Posts: 327
Kansas
Thanks Kathleen.

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