Multiple pieces of collateral may, in some cases, be included on the same agreement,
security instrument, or financing statement.
When determining which pieces of collateral to include on a single instance of a document,
certain characteristics of the collateral should be considered.
- Control Agreement – Deposit: For multiple depository accounts to be referenced on the
same Control Agreement the collateral must have the same collateral owners and be held at the
same depository institution other than the Lender.
- Control Agreement – Investments: For multiple accounts to be referenced on the same
Control Agreement the collateral must have the same collateral owners and be held by the same
intermediary.
- Commercial Real Estate Security Instrument: A separate instance of the Real Estate
Security Instrument – Commercial document will be selected for each piece of non-residential
real property included on the transaction. Non-residential real property includes
non-residential real estate, 2-4 family dwelling, and non-residential condo.
- Residential Real Estate Security Instrument: A separate instance of the Real Estate
Security Instrument – Commercial-Residential document will be selected for each piece of
residential or single family real property included on the transaction. Residential or single
family real property includes single family dwelling, PUD, co-op, townhomes, and residential
condo.
- Pledge Agreement: For multiple pieces of deposit/share accounts, bonds, securities -
corporate stock certificated, securities - other certificated, or securities entitlement
collateral to be referenced on the same Security Agreement-Commercial-Pledge the collateral
must have the same collateral owners. Deposit/share accounts will be included on a separate
instance of the pledge agreement apart from other Financial Assets/ Possessory collaterals if
present on a transaction.
- Security Agreement: In general, for multiple personal property collaterals to be
referenced on the same Security Agreement – Commercial the collateral must have the same
collateral owners. However, if the transaction includes Aircraft or Aircraft Engine/Propeller
Only (750+ BHP) these collaterals will always appear on a separate instance of the Security
Agreement-Commercial regardless of owner.
- Financing Statement: In general, for multiple pieces of collateral to be referenced
on the same UCC financing statement the collateral must have the same collateral owners.
However, there are certain collateral types that will always appear on a separate instance of
the financing statement regardless of owner.
- Aircraft and Aircraft Engine/Propeller Only (750+ BHP)
- Fixture filings or Timber collateral where the collateral documentation is filed in the
real estate records