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Bank question
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greenbine
Posted 5/12/2016 21:14 (#5298164 - in reply to #5297804)
Subject: RE: Bank question


iseedit - 5/12/2016 05:32

JimmyP - 5/12/2016 18:27 That is correct. Lenders are quick to attach to collateral because it is a threshold for getting the loan. When the loan is satisfied, there is no compelling reason to take the time to release the collateral and, if you come back, they don't need to go through the process again. I don't think they are intending to do wrong, it just can work out that way. Many times, you find that the collateral is still attached when you go for a loan elsewhere.

All collateral that banks hold, helps their bottom line - They use it for bank examiners and their books. Helps with other non-performing loans. So, in reality, they are using your items for their good.

I'm not sure, what happens if the bank has your collateral and they go into receivership, even though you don't owe any money or have a loan against the collateral ?



You are wrong, holding a lien position on a paid loan does nothing for a banks "bottom line" nor would a examiner even know. If a loan is paid in full it is no longer a performing or non performing asset, ie not on a banks balance sheet. If they closed the loan out & took a loss they would've extinguished the value of the collateral & wrote of the rest off etc etc etc

Banks have a habit of not releasing a UCC filing if it is senior & said bank is expecting to do more business w/ a customer they have a standing relationship with. If there is no outstanding loans they have no legal right to maintain that position & will release if asked.

JDC, CNH capital, seed dealers etal, will file a purchase money security interest in specific collateral & a corresponding UCC that is senior to a generic bank blanket lien. So the banks lien is second & not an issues in that case.

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