Securities (Insuring Agreement E)

≡	The bank acquires loans originated by a mortgage broker. A borrower subsequently defaults on a note and it is found that the Certificates of Deposit used as collateral had been altered.

≡	The bank accepts a certificate of title as collateral for a loan. The bank relies on this collateral prior to granting the loan. The borrower defaults on the loan and it is later proven that the certificate of title is counterfeit.