Every day the company controller reported the current balances of the pledged assets to the bank, and cash as it came in was regularly deposited in an affiliated bank.
The rationale underlying the decisions applies not only to financing involving real property, but presumably to any financing involving a sale power of attorney for a pledged asset.
This sale power of attorney is to facilitate realisation of the pledged asset in the event of default, without any involvement required on the side of the pledgor.
