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#38562 - 10/24/02 12:17 PM DDA as Collateral
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,965
TN
If memory serves, I was under the impression that a bank could not take a demand deposit account as collateral. Am I correct?
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Lending Compliance
#38563 - 10/24/02 12:29 PM Re: DDA as Collateral
JulieB Offline
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JulieB
Joined: Apr 2002
Posts: 38
SC
If memory serves also, then it would no longer be a demand deposit account because the borrower would not be able to "demand" their money.

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#38564 - 10/24/02 12:56 PM Re: DDA as Collateral
Andy_Z Offline
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Andy_Z
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On the Net
If memory serves, you'd both be correct.
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#38565 - 10/24/02 01:43 PM Re: DDA as Collateral
Lestie G Offline

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Joined: May 2002
Posts: 3,608
Near the Land of Enchantment
Hey! My memory doesn't serve! That's not fair!!
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#38566 - 10/24/02 01:44 PM Re: DDA as Collateral
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,965
TN
I guess I should be careful what terminology I use although I absolutely love humor!
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#38567 - 10/24/02 03:38 PM Re: DDA as Collateral
Anonymous
Unregistered

What is your procedure if a customer requests this?

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#38568 - 10/24/02 03:46 PM Re: DDA as Collateral
Anonymous
Unregistered

Tell them a DDA is not acceptable collateral because you can't perfect a lien.

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#38569 - 10/24/02 03:49 PM Re: DDA as Collateral
Don_Narup Offline

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Joined: Jul 2001
Posts: 3,708
Las Vegas Nevada
Just say No, and that regulations require items presented for payment must be processed without preference, and that the bank has no control over what is presented. But, if they place the funds in a savings account you would be happy to make the loan that way.
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#38570 - 10/24/02 08:47 PM Re: DDA as Collateral
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
Service please!!! Service, I say!!!
My memory does not respond. I think it went home for the day.
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