Three borrowers have submitted a refinance request. Two of the borrowers use the original collateral as a second home and their income to qualify. The primary occupant of the collateral disclosed no income. Would the right of rescission apply to all borrowers since this is considered a second home for the two borrowers? They are also shown as owners on the deed.
On a renewal of an existing loan using crops as collateral, a new security agreement is required. Is it necessary to file a new UCC? The UCC filed when the loan was originally done (along with the original security agreement) is good for 5 years, so why would it be necessary to file a new UCC every year even though a new security agreement is required every year?
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?
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?
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.
Will we need to obtain a copy of a driver license for a guarantor on a loan?
The Loan Department at my bank wants to implement a new fee for customers changing collateral, i.e., vehicles on an existing loan. Evidently, they have a few customers who buy and sell vehicles quite often and instead of doing a new loan, the bank simply changes the collateral securing such loans. If this is done for all customers who change collateral, do we still have a problem? Are we required to do new disclosures?
What is the proper procedure to follow in regards to rewriting an auto loan due to the security being held as collateral for that loan being withheld by member/customer. We have contacted the member/customer on numerous occasions in regard to this matter.
Do we need a right of recission for a mobile home loan? This mobile home is NOT in a mobile home park, but on REAL Property that is also used as collateral on the loan.
I noted on your Roadmap that you indicated a transaction subject to RA9, with security interested perfected under old A9, perfected by filing, in the correct state, with the correct filing, should be continued prior to the normal lapse date by an initial financing statement. I was under the impression that a correctly filed security interest subject to a UCC1 filing under old A9 that meets all the requirements of RA9 should be continued by virtue of a UCC-3 continuation within the window period prior to the normal lapse date, not by an initial filing statement. Please clarify the need for an initial filing statement. Up to this point, I had understood that the initial filing statement was the means to maintain your lien position at the same time you were "correcting" or bringing into compliance with RA9 a filing not meeting the requirements of RA9, but for which you had been perfected under prior A9.