Q&As

When a limited partner makes loans to a limited partnership, can it take security for that loan over the assets held by the general partner?

read titleRead full title
Copyright © 2025 LexisNexis
Published by a LexisNexis Banking & Finance expert
Published on: 07 August 2019
imgtext

limited partnerships—general information

For information on limited partnerships generally, see Practice Note: The nature of a limited partnership and its legal framework.

Limited partnerships—granting security

For information on dealing with limited partnerships in finance transactions generally, see Practice Note: Dealing with a limited partnership in a finance transaction—investigating capacity and authority.

When taking security from a limited partnership, the limited partnership agreement should be reviewed to check the powers of the general partner (GP) to borrow and grant security. Provided it is permitted under the terms of the limited partnership agreement, we are not aware of any law which would specifically prevent the granting of security for a loan from a limited partner.

You may find the following Q&A useful, which looks at how a GP creates security on behalf of a limited partnership: When a corporate general partner for an English limited partnership creates security over the partnerships assets, do they do so as a

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Loans definition
What does Loans mean?

occupational pension scheme resources may not at any time be invested in an employer-related loan. In accordance with section 40 of the Pensions Act 1995, employer-related loans are: loans to the employer or any such person; shares or other securities issued by the employer or by any person who is connected with, or an associate of, the employer; or employer-related investments eg a guarantee or security for obligations of the employer. This does not apply in respect of small self-administered schemes (SSASs) and self-invested pension plans (SIPPs).

Read more readmore

Popular documents

Amending security documents

Amending security documentsReasons for amending security documents and key risksReasons for amending a security documentThere are situations where parties may consider amending security documents. Common examples include:•the parties want to make changes to the obligations being secured•the chargee

Taking security over cash deposits in bank accounts

Taking security over cash deposits in bank accountsCash 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 a company's assets•in transactions where the borrower is required to reserve

Taking security over insurance policies

Taking security over insurance policiesRights 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 additional protections that a lender can utilise in relation to insurances, such as having its

If a rentcharge is shown as being informally exonerated on title information, does this apply to the

If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some