When can a national bank make a loan to an account using the account's assets as security?

A national bank can make a loan to an account using the account's assets as security if it is considered fair and not prohibited by applicable law. This means that the bank has the discretion to assess the loan terms, the risk involved, and ensure that the transaction complies with legal standards regarding lending practices.

In the context of banking regulations, national banks are allowed to secure loans with the assets of the borrower's account, provided that the lending practices align with fairness principles and existing laws. This flexibility enables banks to manage risk and make informed lending decisions while also protecting both the bank and the account holder.

The focus on being fair and adhering to applicable laws is crucial because it ensures that the interests of all parties involved are considered, and it helps maintain transparency in financial transactions. Additionally, it allows for a greater range of lending opportunities as long as the loan conditions are legally compliant.

The other options imply restrictions that are not typically required for the act of securing a loan with account assets. Specifying conditions in the governing instrument, requiring court orders, or needing regulatory approval could complicate the straightforward process of loan agreements, which, under normal circumstances, can proceed as long as they adhere to fair practices and legal standards.