Ex: A consumer applies for a loan and wants to use his certificate of deposit as collateral. The C.D.was issued from our bank. Do we: have customer sign an assignment of c.d. and take possession of the c.d. or do we file a UCC
financing statement?

Also, if it is a commerical loan - how do we perfect the lien/assignment of c.d.
Thanks

I can't speak for KY as I am in IN, but under the Revised Article 9, it's my undestanding you can no longer perfect a lien in a consumer deposit account.

What we do is list the CD by number in the security agreement, have the borrower sign the assignment, take possesion of the CD and put a system hold on the CD.

We do the same for our commercial loans.

Ditto to above. Customer signs assignment and collateral receipt. Place a hold on the CD funds and take possession of it. For a commercial account which is held by another party, your customer would sign a control agreement, which is then sent to the third party informing them of the pledge.