§ 1460 Bank Asset Borrowing Limits

• •Banks cannot pledge their assets as security for borrowed money unless the law permits it.
• •They must stick to the limits and conditions set out in this division.
• •If they do it without permission, they could be breaking the law.

A small business owner wants a loan from a local bank, and the bank thinks about using its own property as security for the loan.

The bank can only do that if the law says it’s okay and they follow the exact conditions written in this part of the law.