Posted by Nate on March 07, 2001 at 11:57:10:
Just because something is not real property does not mean you cannot use it as security for a loan.
Your car is not real property, but you can get a car loan. And if you don’t pay, they will take your car!
You can also get loans secured by all kinds of personal property (boats, trailers, etc.) as well as by business equipment, stocks, bonds, interests in partnerships, etc. None of those are real property.
Just make sure the lawyer who draws up your paperwork is familiar with co-ops in particular, and is not just a real estate lawyer with no specialty in co-ops. Other than that, I don’t see any major issue.
Nate