Question 30
BankingWhich of the following is not an acceptable collateral security for a bank loan?
- A.Certificate of occupancy
- B.Life assurance policy
- C.Lien on deposit account
- D.Family building
- E.Warehouse warrant
Show the answer and explanation
Answer: D (Family building)
Explanation
Good security must have clear ownership; a family house belongs to many people and cannot be pledged by one of them.