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#1912659 - 04/08/14 05:12 PM Can Bank hold more of the CD then the loan amount
cheech Offline
100 Club
Joined: Jun 2010
Posts: 207
Chatsworh PA
Can a bank hold an entire CD ($10,000) if the loan amount is only half the CD ($5,000). I see a possible UDAAP issue, anything else?

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Lending Compliance
#1912667 - 04/08/14 05:19 PM Re: Can Bank hold more of the CD then the loan amount cheech
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,180
Toano, VA
Collateral is usually worth more than the loan it secures. Unless you're willing to reissue two $5,000 CD's, it's up to the borrower to decide whether to pledge the CD or not.
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#1912704 - 04/08/14 05:45 PM Re: Can Bank hold more of the CD then the loan amount cheech
cheech Offline
100 Club
Joined: Jun 2010
Posts: 207
Chatsworh PA
Perfect, thank you.

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