I owe 10k to my mortgage lender. I have a lump sum due in January, as part of my pension. It cannot be assigned and the cheque will be in my name. Can the bank arrange to ring fence this money, as promise of payment?
For those who are not familiar with the term, to "ring fence" a sum of money is to isolate it in such a way as to protect it from outside risk. Your question could be interpreted in one of two ways.
1. Can the bank protect those funds for you from any outside risk (e.g., a third party creditor)?
2. Can the bank protect those funds in such a way as to prevent your access to it, effectively freezing $10,000 from the pension payment in order to ensure your payment of the mortgage?
Your use of the word "cheque" rather than "check" suggests that you are not in the U.S. We aren't familiar with laws and practices outside the U.S.. Contact your bank or a legal advisor to get the answer to your question.
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For those who are not familiar with the term, to "ring fence" a sum of money is to isolate it in such a way as to protect it from outside risk. Your question could be interpreted in one of two ways.