Deed Of Charge And Assignment Template for Ireland

When you need to secure financing or provide security for business obligations in Ireland, a Deed of Charge and Assignment gives lenders comprehensive protection while allowing your company to access necessary funding. This document creates both fixed and floating charges over your assets and assigns various rights and receivables to secure your obligations under loan agreements, credit facilities, or other financial arrangements.

When do you need this document?

You'll need a Deed of Charge and Assignment when your company seeks term loans, revolving credit facilities, or other commercial financing where the lender requires security over your business assets. Banks and financial institutions typically require this security document before advancing significant funds, particularly for acquisition financing, working capital facilities, or refinancing arrangements. The document is also essential in syndicated lending transactions where multiple lenders participate, requiring a security trustee to hold security on behalf of all lenders. If your company is providing guarantees for subsidiary obligations or participating in complex financing structures involving parent company guarantees, this deed ensures proper security arrangements are in place.

Key legal considerations

The deed creates different types of security interests that you must understand. Fixed charges attach to specific assets like land, buildings, or equipment, giving the lender immediate rights over those assets upon default. Floating charges cover changing assets like inventory and receivables, crystallizing into fixed charges when enforcement occurs. Assignment provisions transfer your rights in contracts, insurance policies, and receivables to the lender, requiring careful consideration of consent requirements and notification procedures. You must ensure the charging provisions accurately describe your assets and that assignment clauses don't breach existing contractual restrictions. The deed typically includes negative pledge clauses preventing you from creating competing security interests, and enforcement provisions allowing the lender to appoint receivers or take possession of charged assets upon default.

Legal requirements in Ireland

Under the Companies Act 2014, you must register the deed at the Companies Registration Office within 21 days of execution, with failure to register potentially invalidating the security against third parties. The deed must be executed as a deed under the Conveyancing Act 1881, requiring proper witnessing and corporate execution procedures if your company is the chargor. Part 7 of the Companies Act 2014 governs the registration process and requires filing of prescribed forms with specific details about the security created. The Land and Conveyancing Law Reform Act 2009 affects how security interests in land are created and enforced, while the Registration of Title Act 1964 requires registration of charges affecting registered land. Stamp duty implications under the Stamp Duties Consolidation Act 1999 must be considered, though security documents typically benefit from exemptions. Your corporate secretary must ensure proper board resolutions authorize execution, and all execution requirements including witnessing are satisfied to create valid security interests under Irish law.