Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
Account-centric enterprise content management solutions allow users to access account holder information based on their account numbers.
ACH (Automated Clearing House) is an electronic payment network that enables banks, credit unions, businesses, and consumers to securely send and receive funds between accounts for transactions such as direct deposit, bill payments, recurring payments, and account transfers.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
Agentic AI refers to artificial intelligence systems that can autonomously plan, reason, make decisions, and take action to achieve specific goals with limited human intervention.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
API is short for “application programming interface.” Technology companies like Alogent rely on APIs to connect multiple software applications, thereby enabling a two-way exchange of information to support users’ needs.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

Collateral is something of value that a borrower pledges at a bank or credit union’s request to mitigate the financial institution’s risk in the event of nonpayment. If the customer or member defaults on the loan, the institution will take the item pledged to recover the money lent.

Secured vs. Unsecured Consumer Loans

Loans backed by collateral are secured loans; those that do not require collateral are unsecured loans. Although most loans need collateral, banks and credit unions sometimes make unsecured loans for small, low-risk amounts, such as credit cards and overdraft lines of credit. In these cases, the financial institution lending the money relies solely on an account holder’s creditworthiness.

Secured loans require collateral that can come in many forms, such as a car, certificates of deposit (CDs), real estate, boats, and airplanes. In some instances, even personal property, such as jewelry, is considered collateral.

UCC Collateral for Secured Commercial Loans

Certain types of commercial collateral can be pledged against more than one loan. One common example is Uniform Commercial Code (UCC) collateral. For example, the Acme Company owns equipment, carries inventory, and has accounts receivable worth $5 million. Acme would like to expand and needs a loan of $1 million. The business pledges to State Bank all the assets mentioned above as collateral, even though they far exceed the initial loan amount. Later, Acme realizes, however, that it has underestimated the expansion costs. The company returns to State Bank asking for another $500,000 and pledging the same collateral against its second loan request. At that point, State Banks may consider using the original filing to secure the additional loan. To do so, the financial institution would search the Secretary of State’s UCC Records to determine if any other institutions have a UCC filing on the same collateral. If not, State Bank could file a second lien to secure the new loan in addition to the first one.

Tracking Collateral

In the past, banks and credit unions may have found tracking collateral difficult. Using a paper filing system, financial institutions relied on manual tickler systems to track renewals on UCC financing statements. This approach was time-consuming and fraught with human error, especially when a piece of collateral was tied to multiple loans.

To increase efficiency in these situations, modern banks and credit unions are leveraging the power of collateral tracking software such as AccuAccount. For example, confirming current insurance on a piece of equipment would clear exceptions for all loans that are associated with that collateral. Similarly, once a UCC continuation is recorded in the system, it is reflected across all loan files tied to the collateral. Documents are entered into the system once, allowing numerous exceptions to be resolved with a single action.

Banking Resources

For more collateral tracking tips and best practices, be sure to check out our extensive Innovation Hub with free spreadsheets, whitepapers, and eBooks.

Browse our banking definitions page for more terminology.

Explore more resources

Related articles

Tuesday 13 October 2026

3 Real-World Use Cases of FASTdocs for Consumer Lending Teams

One lender might interact with hundreds of borrowers over the course of a single year. Each relationship involves a variety of conversations, emails, and documents…

Read the Blog

Tuesday 6 October 2026

Cybercriminals Target Processes, Not Just Systems

Banks and credit unions should look beyond traditional cyber defenses. Today's fraudsters increasingly exploit vulnerabilities in account onboarding, document collection, payment processing, and information access…

Read the Blog

Monday 5 October 2026

Why Trust Departments Need AccuAccount

Serving account holders’ needs is the primary responsibility of a trust department. To do that well, financial institutions must carefully balance multiple factors. Here’s why…

Read the Blog

Thursday 1 October 2026

What Your Exception Reports Are Really Telling You About Commercial Lending Performance

This article was originally published on ICBA.

Exception tracking has long been viewed as a compliance necessity in commercial lending. Missing financial statements, expired insurance…

Read the Blog

Wednesday 30 September 2026

Legacy Tech Is Costing Financial Institutions More Than They Think: Here’s How a Modernized ECM Strategy Fixes It

Legacy systems are creating inefficiencies across financial institutions, with employees spending significant time searching for and managing fragmented data. In response, enterprise content management (ECM)…

Read the Blog

Monday 28 September 2026

Four Areas Banks and Credit Unions Should Evaluate as They Plan Next Year's Fraud Strategy

As financial institutions begin budget planning and technology evaluations for the coming year, fraud prevention remains a top operational priority. Faster payments, expanding deposit channels…

Read the Blog

Monday 21 September 2026

3 Strategic Conversations Every Bank and Credit Union Should Be Having About Instant Payments

Is your institution ready for instant payments? The conversation has shifted from if to how, but success requires more than connecting to faster payment rails…

Read the Blog

Tuesday 8 September 2026

Simplifying Work & Reducing Stress for Tellers with FASTdocs

FASTdocs helps tellers balance speed, service, and compliance by providing fast access to account holder documents, account information, and verification records directly from their teller…

Read the Blog