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#2081631 - 06/02/16 11:12 PM Dwelling + Water Rights as Collateral
TMatt87 Offline
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TMatt87
Joined: May 2011
Posts: 1,987
Idaho
We are doing a loan where we are taking an agricultural property which includes a dwelling, as well as a UCC on the water rights as collateral. It is consumer purpose, so TRID does apply. My question is, do the water rights that we are taking as collateral have to be shown on the LE/CD? If so, where do we show the UCC? Does it go in the security interest section?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2081676 - 06/03/16 02:40 PM Re: Dwelling + Water Rights as Collateral TMatt87
Renea Rush Offline
Member
Joined: Dec 2011
Posts: 74
We have not had that come up yet but I would say the fee for the UCC should be reflected in recording fees - other. So it will not show in the Deed or Mortgage area but will be included in the total in the column.

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#2081685 - 06/03/16 03:04 PM Re: Dwelling + Water Rights as Collateral TMatt87
TMatt87 Offline
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TMatt87
Joined: May 2011
Posts: 1,987
Idaho
I agree about the UCC fee, but do we have to show the water rights in the "security interest" section on the CD? I can't figure out a way to add non-real estate collateral to that section in our LOS, so I'm hoping it isn't required, but I can't find any info on it either way.
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#2081709 - 06/03/16 04:09 PM Re: Dwelling + Water Rights as Collateral TMatt87
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
It's not required in the disclosure. You will, of course, have a separate security agreement covering those rights. Under comment 38(a)(3)(vi) you have the option of adding a page to the disclosure and include on it a description of the water rights security.
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