Certificate of Deposit

Question: Business law — Joint Ownership?

Suppose that a Certificate Of Deposit (CD) owned by two joint owners (with the right of survivorship) is given by one of the joint owners as security for a loan (without the other joint owner’s knowledge). Further suppose that the joint owner dies after defaulting on the loan.
Who has superior rights in the CD, the creditor or the other surviving joint owner?

Answer: In most jurisdictions, the surviving joint owner is the owner of the entire CD, but is subject to the lien. So if the loan is not paid back by other assets of the deceased, the lender may collect from the CD.