Deposit accounts, certificates of deposit, brokerage accounts, and mutual funds can be used as loan collateral. Although that sounds simple, the only way to perfect a security interest is by taking possession of the account or obtaining a “control agreement” signed by three parties: the debtor, secured party, and institution holding the account. Simply filing a UCC-1 financing statement does not properly perfect your interest. Applicable to both consumer and business loans, these rules apply whether the borrower is pledging a certificate of deposit at your institution or a mutual fund or brokerage account held at another bank or brokerage firm.
The control agreement must comply with UCC requirements. In addition, there are provisions that should be considered depending on whether your bank is the creditor taking a security interest or the depository that holds the account. This webinar will include a sample deposit account control agreement form that explains which provisions benefit the secured party versus those that benefit the institution holding the account.
Attendance verification for CE credits provided upon request.
Who Should Attend?
This informative session will benefit loan officers at all levels, loan operations personnel, credit administration staff, and others involved in the credit process.
If you are having issues with registering online, please contact CBAO's Education & Training Coordinator, Lianne Simeone, (614) 610-1877.