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Checking Account as Loan Collateral

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Question: 
Can borrowers pledge a checking account (transaction account) as collateral on a loan? If not, what UCC provision applies to this prohibition?
Answer: 

They can, but it is not a wise idea for a bank to go along with it.

First published on BankersOnline.com 3/08/10

First published on 03/08/2010

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