Security Interest in a Savings Bond

Answered by:

Question:

Can a bank get a perfected security interest in a Series E U.S. savings bond?

Answer:

No. From the Savings Bond Resource Guide found here: "A savings bond represents a loan made to the United States. Bonds are registered securities backed by the full faith and credit of the United States. They cannot be sold in a secondary securities market or used as collateral."

First published on BankersOnline.com 7/14/08