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Money from one account is taken to be used as repayment for another.
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∙ 16y ago
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Can a credit union in Maryland repo vehicle that is cross colatoral on another loan if the car is paid up to date?
You answered your own question. CROSS COLLATERALIZATION.
If you have two car loans at one bank can the bank repossess both even though one loan is current?
YES, IF the loans contain a CROSS-COLLATERALIZATION clause. Were you in DEFAULT of any other conditions of the loans? INS.???
If you volunteered a repo with a Credit Union then tried to close out your savings and they refused because of a deficiency is this legal?
READ your contract. look for the term "CROSS-COLLATERALIZATION". Its more common with CU than regular lenders. IF it has that term, YES, its legal.
Can a credit union refuse to release the title of a car reaffirmed AFTER it is paid off because you filed bankruptcy and were discharged for other loans with the credit union?
A discharge of a debt in bankruptcy does not mean the debt is paid.Secured debts such as a vehicle do not get discharged in BK. The loan has to be reaffirmed, paid as agreed or settled according to the terms of the lender.If none of the above apply, the credit union is still a lien holder on the title and the title will not be cleared until that is done.If the loan was reaffirmed and paid according to the terms the credit union has to release the title within a reasonable amount of time. The time limit depends upon how long it takes the payoff transaction to be finalized, for example a check or money order clearing, and so forth.Exception when lender may not release the title: Cross-collateralization!This is a term used when the collateral for one loan is also used as collateral for another loan. If a person has borrowed from the same bank a home loan secured by the house, a car loan secured by the car, and so on, these assets can be used as cross-collaterals for all the loans. If the person pays off the car loan and wants to sell the car, the bank may veto the deal because the car is still used to secure the home loan and other loans. Technically, cross-collateralization expires when the borrower has no outstanding loans with the bank. In the context of bankruptcy, cross-collateralization also means the collateralization of general unsecured prepetition debt by collateral securing post-petition loans.Another example of cross-collateralization is when an individual may have a checking account and a loan at the same bank. If the individual becomes past due on the loan, the financial institution may take money out of the bank account or freeze the account until the loan becomes current.
What is a cross collateral agreement?
Commonly found in account agreements at banks and credit unions, cross collateralization refers to money that is owed to the creditor being "backed" by all or specific other accounts the debtor may hold. An example of this would be a car loan with a bank where the debtor's savings and checking account are used as cross collateral for the car loan. If the debtor fails to pay the car loan, the bank may take funds from the debtor's checking and/or savings account to cover the payment or the loss in addition to any recovery allowed from action against the vehicle itself (such as repossession.
Can a bank take money out a personal account to offset a joint account they misused?
Read your account disclosures. There may be a clause that calls for cross-collateralization or cross-account offset. If you misuse one account, they may have the right to offset funds in another account held by one of the responsible parties. For example, if John is a co-signer on an signature loan under account "A" that is held joint with Cindy and payments are not made, they may be able to reach into account "b" held solely by John and recover payments.
If you have a car loan with Chase that is current can they repossess your car if you default on a different credit card with them?
READ your comtract on the loan and the card. Word to look for: cross-collateralization NO they cannot. Credit cards are unsecured loans. (not secured by any property/collateral) You can have them discharged through bankruptcy. YES THEY CAN. Read your contract. I'll bet it says they can accelerate (call in) EVERY loan you have with them if you are in default on ANY loan with them. And some even say "or with any other lender".
Can a lienholder repossess a car if you have a clean title but still owe them money?
It will depend on the lienholder. Most Credit Unions have a Cross Collateralization clause in their in-house contracts. This means that the vehicle you purchase will also be used as collateral for any and all other loans you may have with them now or in the future. SIMPLE INTEREST CONTRACTS FROM DEALERS DO NOT HAVE THIS CLAUSE. Make sure to read your contract carefully if you are getting a bank draft directly from a bank or credit union. If the lienholder does not pick up the car and there is still money owed, they can hold the title indefinetely or until a settlement is made.
What is new way of the cross?
there is no new cross for the cross.
Cross to bear or cross to bare?
its cross to bear.
Why is southern cross called southern cross?
The southern cross is called the southern cross is because it is a cross of stars to make a cross constellation that is more seen by the southern hemisphere.
Is it cross reference with or cross reference to?
it is always cross refer to ......
