A practical checklist for collateral exhibits

Collateral schedules fail quietly. The form may look filled in, yet the exhibits behind a land parcel or piece of equipment are incomplete. When we audit loan applications, we keep a short checklist beside the collateral page.

Ownership proof with a readable date

Title extracts, registration copies, or equipment invoices should show ownership in the name that appears on the application — or include a clear explanation of shared ownership.

Valuation with a stated method and date

A number without a valuation date is hard for a credit officer to trust. Even an informal estimate should say who prepared it and when.

Encumbrance honesty

If another facility already sits against the asset, say so. Surprises discovered later damage more than the current filing.

Photos only as a supplement

Photographs help, but they do not replace registration or invoice proof. We treat them as orientation, not as the exhibit of record.

Bring this list to your first document-sorting evening; it shortens the second evening considerably.