Anita,
It should be the normal process. When I go to the bank to get a loan for a vehicle. The bank issues the dealership a letter of credit. The letter of credit is funded upon the bank receipt of the title. In Canton our Banking partner provides the dealership with not only the letter of credit but also an original security which is needed for them to place our partnering bank as the lien holder and to transfer into the clients name. The client gets the memorandum. Both the letter of credit and security doc. is given to the client to provide to the dealership. Then the dealership provides the client with the car in return.
I do not understand what issues there should be for your banking partner.
Good luck
Robin Seemann
-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED]]On Behalf Of Anita Corriveau
Sent: Tuesday, April 01, 2003 1:20 PM
To: Loan Committee Discussion Group
Subject: [WTW] Title Encumbrance
Hi All,
I am having extensive delays in closing secured loans (used car loans) with my servicing bank. It was recommended that I submit them as unsecured loans and hold the titles myself (Center for Family Services).
What is the liability to the agency if we hold the titles (CFS as First Lien Holder)? What are the advantages/disadvantages?
Thanks in advance for your input.
Anita - Camden, NJ
Anita Corriveau
WAYS to WORK Family Loan Program
Center for Family Services
584 Benson Street
Camden, NJ 08103
856-964-1990 ext. 295
856-964-0242 fax
[EMAIL PROTECTED]
