05/05/2003
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?
04/21/2003
We will soon be launching a home improvement product for which we will be taking security interest in items that will likely become fixtures, i.e., windows, furnaces, etc. We will not be taking any traditional mortgage in connection with this product. Is the right of rescission triggered by taking such interests? Also, is there any concern with the application of federal flood regulations?
04/07/2003
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.
03/10/2003
If a customer owns the land that a single wide mobile home is located on, and the loan will be secured by both the "Land" and the mobile home, is this type of loan covered under RESPA and REG Z Section 226.19? What disclosures would be required?
02/17/2003
If the bank has a mortgage on a farm, and the mortgage states "That it secures future loans to the borrower"-how do the flood determination rules apply? For example, if the borrower comes in and takes out a 60-day single-pay note. Do we have to do a new flood determination or check the accuracy of the existing flood determination we did when the mortgage was established?
02/01/2003
The Comptroller of the Currency has put forward a revolutionary idea: consumer disclosures that are easy to prepare and understandable to consumers. What a novel concept.
01/06/2003
I am doing a home refinance for a husband and wife. The Deed of Trust is vested in his name only as his separate estate. Both husband and wife live at the home. Should the wife also be a grantor on the property and receive a Right of Recsission?
12/16/2002
Is there a section in the regulation that clearly defines what loans are excluded under HOEPA (i.e., construction) Under state regulation it appears that construction loans are exempt however I am unable to locate anything in the reg.
11/01/2002
Question: We closed a refinanced home loan several days ago and the customer just called to rescind the loan.
08/12/2002
How often should you send a Notice of Security Interest to a buyer of farm products in a state that does not have central filing for farm products? As we are surrounded by states that are not EFS states, we send Notice of Security Interest or Direct Notifications to feedlots, but we're not sure if continued notification is annual or 18 months or something else