Posted By: cheech
Can Bank hold more of the CD then the loan amount - 04/08/14 05:12 PM
Can a bank hold an entire CD ($10,000) if the loan amount is only half the CD ($5,000). I see a possible UDAAP issue, anything else?
Posted By: Richard Insley
Re: Can Bank hold more of the CD then the loan amount - 04/08/14 05:19 PM
Collateral is usually worth more than the loan it secures. Unless you're willing to reissue two $5,000 CD's, it's up to the borrower to decide whether to pledge the CD or not.