Using ownership in another entity as collateral

We finance Borrower A's LOC and a few other loans. All together, this customer lacks loan margin (LTV>100%). They own a percentage of Borrower B, which is a partnership, and list their equity in Borrower B as a current asset (all assets and liabilities of Borrower B are current assets and current liabilities). We also fund the operating LOC for Borrower B, which is financially very strong.

My first question is - Should we leave the equity of Borrower B in the current asset portion of Borrower A's balance sheet? Adding or removing this value will make or break Borrower A's current ratio.

Second question - Can we list the equity in Borrower B as collateral in Borrower A's collateral position? The argument for doing so is we have "control" of Borrower B, since we fund their LOC. The argument against is the fact that we are not perfected in Borrower A's ownership of Borrower B.

This is a credit underwriting decision that you need to work out internally. If you are not perfected in the collateral - it is an unsecured loan regardless of the information in your possession.