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#654108 - 12/19/06 04:25 PM Com'l Ln Secured by Jnt CD in Consumer Name
Anonymous
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If you have a commercial loan that is secured by a CD owned by an individual (or two individuals with only one as borrower), can you simply use a commercial security agreement, or do you have to use both the commercial security agreement and the assignment of deposit account? It seems the security agreement naming the collateral would be sufficient.

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#654121 - 12/19/06 04:41 PM Re: Com'l Ln Secured by Jnt CD in Consumer Name Anonymous
Tom at HOME Offline
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Joined: Oct 2005
Posts: 1,139
It is most common to use an assignment, which is a security agreement that transfers ownership. Either one may be used, but I tend to use the assignment. Both are not required.

I would get the non-borrowing party to agree to, or at lease be aware of, the assignment.

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#654514 - 12/19/06 11:21 PM Re: Com'l Ln Secured by Jnt CD in Consumer Name Tom at HOME
Tom at HOME Offline
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Joined: Oct 2005
Posts: 1,139
I forgot to mention, you have additional problems if the jurisdiction for the CD is Colorado.

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