04/21/2003
We will soon be launching a home improvement product for which we will be taking security interest in items that will likely become fixtures, i.e., windows, furnaces, etc. We will not be taking any traditional mortgage in connection with this product. Is the right of rescission triggered by taking such interests? Also, is there any concern with the application of federal flood regulations?
04/21/2003
Frequently we have borrowers who wish to exchange the collateral on their loan, and leave all the terms the same. For example, a customer has a vehicle loan, trades in the vehicle and wants to exchange the collateral. The original loan was done using a combination note/disclosure and security agreement. Can we comply with the customer's request? If so, should we use a Change in Terms Agreement to document the collateral exchange or, does a new note and security agreement need to be completed?
04/14/2003
An examiner (OCC) told me all employees have to be trained on each regulation every 18 months. Where can I find this requirement in the regulations?
04/14/2003
With the Revised Article 9 would you suggest to continue getting property and legal descriptions for Agricultural or crop loans on state filings and security agreements?
04/07/2003
We have a debate going on in our bank and would like some advice on the best course of action. Some are advocating that whenever a CD or savings account is pledged as collateral that is joint with right of survivorship, all owners of the deposit account must execute the assignment/pledge. Others are saying this is not feasible. The UCC for joint accounts seems to indicate that any party on a joint account can pledge it as security on a loan and other parties do not have recourse against the creditor IF the proper assignment or pledge has been used as the security instrument. The language is, however, ambiguous. There are definitely benefits to obtaining all account owners' signatures but it presents difficulty in obtaining them also.
02/17/2003
Customer has a checking account with Direct Deposit of monthly Social Security and has requested our $500 overdraft protection product.Can the minimum monthly payment be automatically deducted from the checking account even though it contains Social Security deposits?
02/17/2003
If the bank has a mortgage on a farm, and the mortgage states "That it secures future loans to the borrower"-how do the flood determination rules apply? For example, if the borrower comes in and takes out a 60-day single-pay note. Do we have to do a new flood determination or check the accuracy of the existing flood determination we did when the mortgage was established?
02/01/2003
The Comptroller of the Currency has put forward a revolutionary idea: consumer disclosures that are easy to prepare and understandable to consumers. What a novel concept.
12/01/2002
The Federal Reserve Board staff has held constant and issued a proposed update to Regulation Z's Official Staff Commentary in time for the holiday mail.
11/18/2002
I remember reading article concerning a combined note and disclosure. I am unable to locate the article on the site. Could you please assist me in finding the article?