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One of these exceptions is the âabundance of cautionâ exception, in which a lien. on real estate has been taken as collateral in an abundance of caution. 12 C.F.R. Â§ 34.43(a)(2). For this exception to apply to the six Notes Receivable being considered here, there must be.
Answered by: Question: My question deals with the definition of the term abundance of caution. I have recently read to qualify under the abundance of caution definition, you would have to make the loan under the same terms and condition as if the borrower did not offer the real estate as collateral..