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CD Secured Loan - All Owners Sign the Assignment

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Question: 
When a loan is secured by a certificate of deposit held by the same organization should all names listed on the certificate sign the assignment if the C or D states "or" instead of "and"?
Answer: 

This may depend on state law. In Texas, a CD titled with an "or" can be pledged by any of the signers. However, in Texas, Probate Code Section 442 requires that:

"Not later than the 30th day after the date on which a security interest on a multiple-party account is perfected, a secured creditor that is a financial institution the accounts of which are insured by the Federal Deposit Insurance Corporation shall provide written notice of the pledge of the account to any other party to the account who did not create the security interest. The notice must be sent by certified mail to any other party at the last address the party provided to the depository bank and is not required to be provided to a P.O.D. payee, a beneficiary, or a convenience signer. "

First published on BankersOnline.com 12/10/07

First published on 12/10/2007

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