Priority, amending and releasing security

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Priority, amending and releasing security 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

This Practice Note sets out the process for dealing with the release of security over commercial (as opposed to residential) property and the issues that must be...

Practice Note

The key feature of a floating charge is that, until it crystallises, the chargor is entitled to deal with the charged assets in the normal course of business without any...

Practice Note

Release of a surety The mere fact that a creditor accepts further security from the principal debtor does not release a surety. A release of the collateral security will...

Practice Note

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

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 letter of non-crystallisation? A letter of non-crystallisation is required by a buyer’s/lender’s solicitor to confirm that: • a floating charge has not...

Practice Note

Mortgagee’s consent to grant of lease If a property is subject to a mortgage that prohibits leasing without the mortgagee’s consent, then written evidence of consent must...

Practice Note

Priority follows the order of registration Registered charges on the same registered estate will rank between themselves in the order in which they were registered...

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

Registered proprietor of the land While the proprietor of a registered estate subject to a registered charge is: • in possession, and • subject to any contrary intention...

Practice Note

Variation A registered charge must be varied by deed. The application to register the deed must be made: • in the prescribed form, and • by or with the consent of the...

Practice Note

To deal with the discharge and release of security, it is necessary to consider: • the conditions to be satisfied before any release is effected eg the redemption amount...

Practice Note

When/why would a lender or a borrower want to substitute security in a real estate finance (REF) transaction? The reasons why a lender or a borrower may wish to...

Practice Note

Disposal and devolution The equity of redemption arises as soon as the mortgage is made. It is an interest in the land which the mortgagor can: • transfer, lease or...

Practice Note