Is a pledge enforceable electronically?

Yes, electronic execution is generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided the transaction meets intent, consent, attribution, and record retention requirements.

Do banks require notarization?

Many banks require notarized signatures or a bank acceptance block before taking control of a CD; check the bank’s policy and state notary requirements to ensure acceptance.

Should I file a UCC-1 financing statement?

Filing a UCC-1 may be necessary to perfect a security interest unless perfection occurs by control or possession; consult counsel to determine the correct method under UCC rules.

How do I confirm signer authority?

Provide a corporate resolution, trustee certification, or power of attorney demonstrating the signer’s authority; without proof, the bank may refuse acceptance.

What happens at CD maturity?

The pledge agreement should state who receives maturity proceeds and any instructions for applying funds to the secured obligation; absent instructions, banks follow the pledge terms and applicable law.

Can I revoke the pledge?

Revocation is governed by the pledge terms and satisfaction of the secured obligation; obtain written release from the secured party and, if filed, terminate the UCC-1 financing statement as appropriate.

Electronic Signature
Templates
Other
Pledge of Certificate of Deposit

Pledge of Certificate of Deposit

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Affidavit of Corporate Officer

State of Louisiana

Parish of

On this day of before me appeared to me personally

known, who, being by me duly sworn (or affirmed) did say that he is the president (or other officer or agent of the corporation or association), of (describing the corporation or

association), and that the instrument was signed and sealed in behalf of the corporation (or association) by authority of its Board of Directors (or trustees) and that acknowledged

the instrument to be the free act and deed of the corporation (or association) and that the corporation (or association) has no corporate seal.

(Signature of notarial officer)

Title (and Rank)

Notary ID Number: or

Attorney Bar Roll Number:

What the Pledge of Certificate of Deposit Is

A Pledge of Certificate of Deposit is a written agreement by which the owner of a bank-issued certificate of deposit (CD) grants the bank, lender, or other secured party a security interest in the CD as collateral for an obligation. The document identifies the CD, the obligor and secured party, the amount or formula securing the obligation, and the conditions for release or enforcement. It commonly includes representations about ownership, assignment or lien priority, and instructions for payment at maturity. The pledge may be standalone or included as a clause in a loan or security agreement.

Why a Pledge of Certificate of Deposit Matters

Using a formal pledge documents the lender’s collateral interest, clarifies rights at maturity, and reduces disputes about ownership or priority. It helps perfect a security interest when combined with possession, control, or UCC filing depending on the arrangement and state law.

Who Typically Prepares or Signs This Document

Common users include banks, borrowers using CDs as collateral, lending officers, and in-house counsel arranging secured credit.

Banks and lenders that require liquid collateral for short-term facilities or secured lines of credit.
Individual or business CD holders who pledge deposits to secure loans or obligations.
Trust officers or corporate counsel documenting collateral and bank custodial arrangements.

The document’s exact form varies by institution; banks often provide their standard pledge form, while attorneys may draft bespoke language for complex arrangements.

Who Has Signing Authority

Bank Officer

A bank officer or authorized representative signs on behalf of the bank or secured party; their signature confirms acceptance of the pledge and any instructions for control, release, or liquidation.

Account Holder

The CD owner (individual, trustee, or corporate officer) must sign to grant the security interest; the signer must have authority shown by corporate resolution, trust instrument, or individual ID to avoid challenges to validity.

Essential Information to Include

Certificate Number: Issuer CD identifier

Bank Name: Issuing bank

Maturity Date: MM/DD/YYYY

Account Holder: Name on CD

Pledged Amount: Dollar amount

UCC Filing: Filing reference

Risks and Consequences of Errors

Invalid Pledge: Unenforceable pledge

Lien Priority: Subordination risk

Tax Withholding: Backup withholding

Bank Rejection: Processing delays

UCC Defect: Failure to perfect

Fraud Exposure: Unauthorized pledge

Common Preparation Pitfalls to Avoid

Leaving the CD identification incomplete or using non‑matching names between the CD and pledge creates ambiguity that may void the security interest.
Failing to state the precise pledged amount or formula (for example, principal plus accrued interest) can lead to enforcement disputes at maturity.
Neglecting to attach a copy of the actual CD or bank confirmation slows acceptance and may require re-execution.
Assuming oral instruction suffices when the bank requires written or notarized acceptance leads to rejection or delay.

Step-by-Step: Completing the Pledge of Certificate of Deposit

Follow these steps to complete the pledge accurately and minimize processing delays.

01

Identify Parties: Enter the full legal names of pledgor and secured party.
02

Describe the CD: Include issuer, certificate number, face amount, and maturity date.
03

State Security Terms: Specify amount secured, events of default, and rights at maturity.
04

Sign and Verify: Sign with authority and add notarization or bank acceptance if required.

How the Pledge Works in Practice

A clear pledge sets expectations about control, release, enforcement, and documentation held by the bank or secured party.

Execution: Pledgor signs and delivers the pledge to the bank or its counsel.
Control or Possession: Bank takes possession or obtains control per institution policy.
Perfection: Party perfects interest by control or UCC-1 filing where appropriate.
Release: Bank releases pledge on satisfaction or maturity per terms.

Core Clauses and Sections to Include

A professional pledge covers identity, collateral description, security terms, rights on default, representations, and release mechanics to reduce legal and operational ambiguity.

Collateral Description

Precise identification of the CD including issuer, certificate number, face amount, interest terms, and maturity date; avoids mistaken identity and supports enforcement.

Security Grant

Unambiguous language granting a security interest in the CD and related proceeds, describing scope, priority, and any subordination agreements.

Obligations Secured

Clear statement of the obligation(s) secured — principal, interest, fees, and contingent liabilities — and whether it is present or future debt.

Default Remedies

Permitted actions upon default, including liquidation of the CD, application of proceeds, and notice or cure periods required by the agreement.

Perfection and Control

Method of perfection (possession, control, or UCC filing), responsibilities for filing, and reference to any UCC-1 financing statement.

Release and Termination

Conditions for release of the pledge, required documentation returned to pledgor, and process for reclaiming funds at maturity or payoff.

Digital Workflow Setup for Online Completion

Set up fields and signer order to reflect bank requirements and ensure the secured party receives a final executed copy.

Field	Configuration
Pledgor Name	Required text field, exact match
CD Details	Grouped fields: issuer, number, maturity
Signature Block	Signer name, title, date required
Bank Acceptance	Checkbox or signature for bank officer

Technical and Security Considerations for eCompletion

Use an eSignature workflow that supports audit trails, optional multi-factor authentication, and PDF export to preserve evidentiary records.

Authentication: Email, SMS, or stronger
Audit Trail: IP, timestamp, actions
Document Formats: PDF/A and DOCX supported

Ensure the chosen platform can produce a certificate of completion, retain a tamper-evident signed file, and meet any HIPAA, SOC 2, or 21 CFR Part 11 requirements relevant to your organization.

Key Dates and Timing to Observe

Track effective dates, maturity, cure periods, and required notices to avoid unintended default or loss of collateral control.

Effective Date:

Date pledge becomes binding; use MM/DD/YYYY format.

Maturity Date:

CD maturity controls release and payment.

Notice Period:

Time required before bank enforces remedies.

Cure Period:

Borrower opportunity to remedy default per agreement.

UCC Renewal:

Monitor financing statement expirations and renewals.

Milestones from Execution to Release

Typical processing stages begin with execution and end with release; follow each milestone to track perfection and closure.

01

Execution

Parties sign and deliver the pledge to the bank.

02

Control Established

Bank takes possession or control of CD.

03

Perfection

UCC-1 filed or control confirmed where applicable.

04

Release

Collateral returned at satisfaction or maturity.

eSignature Vendor Pricing Snapshot for Pledge Workflows

Comparison of common eSignature providers for executing pledge forms; signNow is listed first per standard vendor ordering.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About the Pledge of Certificate of Deposit

Answers to common questions about signing, notarization, control, and practical issues when pledging a CD as collateral.

Need help? Contact support

Is a pledge enforceable electronically?
Yes, electronic execution is generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided the transaction meets intent, consent, attribution, and record retention requirements.
Do banks require notarization?
Many banks require notarized signatures or a bank acceptance block before taking control of a CD; check the bank’s policy and state notary requirements to ensure acceptance.
Should I file a UCC-1 financing statement?
Filing a UCC-1 may be necessary to perfect a security interest unless perfection occurs by control or possession; consult counsel to determine the correct method under UCC rules.
How do I confirm signer authority?
Provide a corporate resolution, trustee certification, or power of attorney demonstrating the signer’s authority; without proof, the bank may refuse acceptance.
What happens at CD maturity?
The pledge agreement should state who receives maturity proceeds and any instructions for applying funds to the secured obligation; absent instructions, banks follow the pledge terms and applicable law.
Can I revoke the pledge?
Revocation is governed by the pledge terms and satisfaction of the secured obligation; obtain written release from the secured party and, if filed, terminate the UCC-1 financing statement as appropriate.

Explore Templates

Quitclaim Deed Acknowledgement of Receipt of Gift Donation Acknowledgement of Sale on Consignment Agreement Letter of Understanding Apology for Misconduct Disputed Balance Notice

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now