From the point of view of the bank`s lawyer, this requires a considerable improvement in the representation of an insured party. Any secure part, for example. B a bank that grants a loan, inevitably wants to have as much control over its guarantees as the borrower is willing to give, and the law allows it. In a declining real estate market, an obvious source of collateral for lenders may be a borrower`s deposit. But taking a deposit as collateral adds an additional element to the credit process by putting a new party at the table – the financial intermediary. Understanding that the top priority of a secured party is for a secure lender to take control is the first step to properly insuring such an account. The realization that you are not limited to using a broker`s pre-printed control agreement allows the lender to further improve its position. As people in the industry know all too well, different forms of warranties require different procedures to properly perfect their security interests. Real estate, for example, is relatively simple; A secure portion of Missouri registers a duly executed trust deed with the document registry office in the county where the property is located.
Real estate held as investments (stocks, bonds, investment funds, brokerage accounts, etc.) is a whole other animal. Under the Single Commercial Code (“UZK”), a deposit is considered investment property (UZK § 9-102 (a) (49)). Most investors do not physically own their certified securities (stock certificates or bonds); rather, they are owned by their financial intermediaries.