My uncle has a CD and I'm buying a business. Can we use his CD as collateral, and how can he benefit from this?
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Your uncle can pledge his CD as collateral for your loan. If he has the actual CD, he would need to surrender it. Otherwise, the bank will take an assignment on it. The loan and CD should be at the same bank, otherwise the lender may refuse just because he can't take control, and the other bank with the deposit could create problems with the collateral.
Your uncle could pledge his collateral for you without being obligated on the debt. Failure to pay however, would cause your uncle to lose his CD, and it would benefit him if you repaid your debt on time. That way your uncle wouldn't worry about losing his savings.
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Your uncle can pledge his CD as collateral for your 