Key issues in transferring security

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Key issues in transferring security
  • When is security transferred?
  • How can security be transferred?
  • Novation
  • Assignment
  • Documentation issues
  • Restrictions and consents
  • Interpretation provisions
  • Confidentiality
  • Covenant to pay
  • More...

Key issues in transferring security

Coronavirus (COVID-19): Transaction planning will need to take into account the impact of coronavirus (COVID-19) on execution of documents and company filing and administration procedures. For further information, see Practice Note: Coronavirus (COVID-19)—implications for lending transactions—Coronavirus (COVID-19)—impact on deal execution?

In addition, in relation to registration of new security and registration of changes to security, it is advisable to check the relevant registry website for up to date information. In relation to Companies House, and HM Land Registry, see Practice Note: Coronavirus (COVID-19)—implications for lending transactions—Coronavirus (COVID-19)—impact on deal execution? For the more specialist registries, see the coronavirus update set out at the top of the following Practice Notes:

  1. Perfecting security over ships and registering security on the UK Ship Register

  2. Perfecting security over aircraft and registering security on the UK Register of Aircraft Mortgages

  3. Perfecting security over intellectual property rights and registering security at an intellectual property registry

For wider information on key developments and related practical guidance on the implications of coronavirus for lawyers, see: Coronavirus (COVID-19) toolkit and in relation to Banking & Finance specifically, see Practice Note: Coronavirus (COVID-19) implications for Banking & Finance lawyers.

When is security transferred?

Security interests would usually be transferred between creditors in instances where:

  1. a secured bilateral loan is transferred or assigned from one lender to another and the corresponding security is likewise transferred

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