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#213767 - 07/21/04 03:20 PM Third Party Pledge on loans secured by CD
yy2say Offline
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yy2say
Joined: Apr 2002
Posts: 279
PA
I hate asking this question ...but I am in a quandry and need some advice. Here is the situation:

CD owned by "A" and "B" (Joint tenants with rights of survivorship)

"A" comes in and takes a loan with the CD as collateral.

Does "B" need to sign a Third Party Pledge Agreement?

I believe we would have "B" sign the Third Party Pledge to perfect our interest in the collateral.

It is our practice to get this done; however, I am getting some STRONG pushback from the new "powers that be." They would like to see it in writing, blah, blah, blah.

Can someone give me guidance?????
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#213768 - 07/21/04 03:32 PM Re: Third Party Pledge on loans secured by CD
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,590
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Some of this may be influenced bt state laws. As a general rule, if A or B could cash in the CD either can obligate it. (In Texas) A notice may then be sent to the other advising them of the pledge as collateral and they can duke it out if need be.
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