A CD covered a note for the owner's daughter (given verbal agreement not to have to pay back). The owner died 3/17/07 and the CD matured on 3/21/07. The bank sent notice to the daughter the note the CD secured has to be paid in full because her father was no longer the owner of the CD, since he died. If not paid, his present wife could put a lien on assets to get back. What is the legal procedure and what rights does the daughter have?
In simple terms, the CD secures the loan and there was consent for this. That CD is now owned by the estate. If the loan is not repaid, the CD will be cashed to pay the loan. If there are still monies owed, the daughter is on the loan and has to pay. The estate may pressure the daughter to repay the loan in an effort to preserve assets of the estate. That is a separate scenario though from the banks interest.
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In simple terms, the CD secures the loan and there was consent for this. That CD is now owned by the 