Answer:
If the agreement or state law under which the custodianship was established allows the custodian to pledge the asset, yes.
However, if the account was established under your state's UTMA, check the law very carefully. In many states, the custodian can't pledge UTMA assets. At the very least, the loan would have to be used for the benefit of the minor.
First published on BankersOnline.com 3/29/10
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