Perfecting security in loan transactions

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

  • Perfecting security in loan transactions
  • Perfecting security by registration at Companies House
  • What to register and when
  • How to register security at Companies House
  • Forms and precedents
  • Perfecting security by registration at specialist registries
  • Perfecting security by notice to a third party
  • Precedent forms of notice

Perfecting security in loan transactions

Coronavirus (COVID-19): Transaction planning will need to take into account the impact of coronavirus 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?

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.

For transactions which involve security, it is extremely important to ensure that all perfection requirements are dealt with after completion. The lawyers acting for the lender(s) will usually deal with perfection since a failure to perfect the security correctly will mean that the security will not be enforceable against certain third parties. For more information, see Why is it necessary to perfect security?.

For some types of perfection, strict time limits apply and therefore it is important to deal with any perfection requirements as soon as possible after completion.

The ways in which security is perfected are:

  1. by registering the security, and/or

  2. by giving notice of the security to a third party

For more information, see:

  1. How is security perfected?, and

  2. Post-completion in loan transactions—checklist for the lender's lawyers — Perfecting security

This Practice Note contains information on:

  1. perfecting security by registration at Companies House

  2. perfecting security

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