Security in acquisition finance transactions

Security in acquisition finance transactions guidance:

Reasons for amending security documents and key risks Reasons for amending a security document There are situations where parties may consider amending security...

Practice Note

General duty of liquidators and administrators where there has been an unlawful transaction If, during the course of a liquidator's or administrator's investigations into...

Practice Note

Bankruptcy searches at the Land Charges Department When a bankruptcy petition is presented by a creditor, the court shall as soon as reasonably practicable send to the...

Practice Note

COMPANY NUMBER: [insert company number] [insert company name] [LIMITED OR PLC] Minutes of a meeting of the board of directors (the Meeting) of [insert full name of...

Precedents

[To be printed on the headed paper of the Guarantor] [insert date] To: [insert name and address of the lender] Dear [insert full name of lender] 1 We refer to the...

Precedents

This Deed is made on [insert day and month] 20[insert year] Parties 1 [insert name of Lender], a company incorporated in England and Wales with registered number [insert...

Precedents

Registration can have an important effect on the priority of competing security interests. Broadly speaking, there are two different systems for registration of security...

Practice Note

What is a debenture? In the context of secured lending, the term 'debenture' means a form of security agreement that grants security interests over a broad range of the...

Practice Note

This Practice Note considers the enforcement options available to lenders where they hold fixed security. In particular it covers: • the options available when taking...

Practice Note

Security over land can be taken by way of mortgage or charge with the appropriate form often depending on the significance of the land to the borrower's business or the...

Practice Note

Certain companies are prohibited from providing financial assistance, directly or indirectly, for the acquisition of their own shares or shares in their holding company....

Practice Note

A floating charge is most commonly contained in a debenture along with other forms of security such as fixed charges, assignments and legal mortgages. Inclusion of a...

Practice Note

It is common for the parties to a facility agreement to want to amend its terms, often a number of times, during the life of the facilities. They may, for example, wish...

Practice Note

Debentures are used in many types of financing where it is desirable to take security over all of the assets of a particular entity. They are a form of umbrella document,...

Practice Note

When is security transferred? Security interests would usually be transferred between creditors in instances where: • a secured bilateral loan is transferred or assigned...

Practice Note

[ON HEADED NOTEPAPER OF CHARGEE] [insert the name and address of the buyer/ second lender] [insert date] Dear [insert organisation name], [Debenture OR Floating Charge]...

Precedents

Why is it necessary to perfect security? When a creditor takes security, it will be concerned with three issues: • whether the security is binding on the security...

Practice Note

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a...

Practice Note

Once security is validly created it is binding as between the security provider and the secured party. However, the security is not necessarily binding on third parties...

Practice Note

In addition to ensuring its security has been validity created and perfected, a secured party will want to ensure its security ranks as it expects against any other...

Practice Note

This Practice Note sets out examples of how the rules on priority could work in practice with reference to the relevant priority rules under English law. It complements...

Practice Note

The scope of this Practice Note This Practice Note explains the regime for registering charges at Companies House where the charge was created on or after 6 April 2013...

Practice Note

Local counsel are frequently instructed to draft local law security documents on acquisition finance transactions. This can occur where a group company in another...

Practice Note

This Practice Note covers: • aims when taking security and guarantees on an acquisition finance transaction • the common structure of the security and guarantee package...

Practice Note

A structure chart showing the corporate structure of a borrower together with the security granted in favour of the lender (or other entity) is a helpful way to visually...

Practice Note

Cash is commonly offered as security for a loan. In commercial lending transactions cash may be offered as security: • as part of a package of security over the whole of...

Practice Note

Contractual rights are a type of chose in action, ie something that is recoverable by legal action as opposed to something that is physically possessed. Security over...

Practice Note

Goods can vary from large, high-value items such as ships and aircraft to stock in trade. How lenders take security over goods from a corporate chargor will depend on...

Practice Note

Rights under insurance policies are a type of contractual right. Lenders can take security over insurance policies by an assignment by way of security. There are also...

Practice Note

Land (or real property) is commonly offered as security for a loan. In this context, land has more relevance than some other assets because it can be used in personal...

Practice Note