Ann Kilbane

This Practice Note considers the release of security following the full or partial satisfaction of a secured debt. It looks at some preliminary issues to consider before any release is effected and the steps that must be taken to register the release of security at the Companies Registrations Office and/or on an asset register (eg at Tailte Éireann, Registry of Deeds, at the Central Bank of Ireland, on the Register of Ships, at the Irish Aviation Authority or at the Intellectual Property Office of Ireland).

This Precedent can be used for partial release of security and is intended for use in relation to a bilateral debenture or mortgage document where the chargor is a company registered in Ireland. The partial release of a mortgage or charge will usually be documented through a deed of release. This is particularly important where the security has been released early or without full satisfaction of the debt as this avoids any debate about a lack of consideration and ensures that any third-party dealing with the security provider can be confident that the partial release was effective. Also, the partial release should be documented by way of a deed if the security involves a legal mortgage of land in order to satisfy LCLRA 2009 (IRL). A partial release may be suitable when the creditor still requires certain security to be held It is therefore important that the description of the released property is clearly and accurately described in the schedule to the deed of partial release.

This Precedent can be used for full or partial release of security and is intended for use in relation to a bilateral debenture or mortgage document where the chargor is a company registered in Ireland. The release of a mortgage or charge will usually be documented through a deed of release. This is particularly important where the security has been released early or without full satisfaction of the debt as this avoids any debate about a lack of consideration and ensures that any third-party dealing with the security provider can be confident that the release was effective. Also, the release should be documented by way of a deed if the security involves a legal mortgage of land in order to satisfy LCLRA 2009 (IRL). A full release may be suitable when the creditor no longer requires any security to be held, for example, when all debts owed to the security holder are being repaid or refinanced by another lender. Where a full release is taking place, the obligations and liabilities of the security provider will also be released.