Under the revised Article 9, we are required to terminate the UCC on consumer goods when the debt is satisfied. What is the definition of consumer goods?
Is it a requirement to list the collateral for a loan in the Reg Z Fed Box?
Is there any requirement to return paid notes and canceled mortgages or other such documents to the borrower when the loan is paid off? Our management is trying to save time and postage.
A customer has a revolving line of credit with a mortgage on their home as collateral and a right to rescind was given at closing. The full amount of the loan has been used and partially paid back. If the customer wants another draw will another right to rescind be necessary at that time?
Does the right to rescind apply when we are just "swapping properties"? We currently hold a 2nd mortgage on a property. That property is being sold and we would like to replace the mortgage with the new property, but not refinance the loan. Does Reg Z apply to this transaction? No new money is involved. Original lender.
When a customer at our bank comes in to do a $1000 personal unsecured loan and we hold a mortgage on their home prior to this loan, that has an additional advance clause, if we uncheck the box on the new $1000 loan that refers to cross collateralization, are we securing the loan with the real estate anyway, due to a previous security agreement being in the customers file? Would unchecking the box on the loan that says "collateral securing other loans from lender may also secure this loan" cover that bases for compliance?
Regarding Regulation B, if we are in a community property state, can we require a spouse’s signature on any related note? Alternatively, are we required to maintain evidence of joint application for loans even when there is no written application, such as a small business loan?
Under UTMA regulations it was my understanding that in order to use a UTMA account as collateral for a loan we needed some sort of proof that this money was to be used to benefit the minor. Is this correct? If so, how can we be sure that the loan proceeds are being used for the minor?
When financing accounts receivables should the payables be considered when calculating the borrowing base. I am trying to determine if the security interest follows the collateral. For instance if your borrower purchases inventory on an open account and then sells to his customer creating a receivable which he finances with you does the original seller of the inventory have a priority interest?
We are working on our AML procedures and training and are trying to find examples of how someone would launder money by using a loan. We have come up with buying a CD with a small amount of cash, pledging it on a loan, and using it to pay off the loan. What other examples can you give?