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#417032 - 08/31/05 08:29 PM Taking an annuity as collateral?

Has anyone ever done this? Do you need a control agreement or an assignment- like with life insurance?

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Lending Compliance
#417033 - 08/31/05 10:38 PM Re: Taking an annuity as collateral?
Sooner Fan Offline
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Joined: May 2005
Posts: 220
Where the wind blows swiftly d...
I can't put my finger on it, but I believe for some reason that you cannot take annunities as collateral. (just like IRA accounts, cannot be used as collateral on a loan)

I just can't remember why.

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#417034 - 09/01/05 01:48 PM Re: Taking an annuity as collateral?
rlcarey Offline
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Joined: Jul 2001
Posts: 83,034
Galveston, TX
It really depends on the annuity - you would have to read the contract. If it is allowed, you would then proceed similar to the way you would if you were taking a whole life insurance policy.
The opinions expressed here should not be construed to be those of my employer:

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#417035 - 09/01/05 02:46 PM Re: Taking an annuity as collateral?
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Including reading about the assignability (sp) of the policy, also verify that the rights of the assignor and the rights of the beneficiary at time of payout. You could then contact the company for their assignment form and if you approve the form, have the owner and beneficiary sign the assignment. I wouldn't release funds until the assignment is back from acknowledgement.
Just working here until I get my letter from Hogwarts.

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#417036 - 09/01/05 03:10 PM Re: Taking an annuity as collateral?
Sage Offline
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Joined: Aug 2005
Posts: 914
Thanks for the help. I guess this is considered insurance so the UCC does not cover it?

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