Termination Of Security Agreement for Malta

Termination Of Security Agreement Template for Malta

This document serves as a formal agreement to terminate existing security arrangements under Maltese law, typically used when secured obligations have been fully satisfied or require cancellation. It ensures the proper release of security interests, removal of charges from public registers, and return of security documentation. The agreement complies with Maltese legal requirements, including the Civil Code and Financial Collateral Arrangements Regulations, and addresses specific local registration and de-registration procedures. It provides comprehensive protection for both security holders and providers by clearly documenting the discharge of obligations and release of encumbrances.

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What is a Termination Of Security Agreement?

The Termination Of Security Agreement is a crucial document used in Malta when parties wish to formally end their security arrangements, typically following the full repayment of secured obligations or a mutual agreement to release security interests. This document is essential in various financial and corporate scenarios, including loan repayments, refinancing transactions, or corporate restructurings. It must comply with Maltese legislation, including the Civil Code (Chapter 16), Companies Act (Chapter 386), and Financial Collateral Arrangements Regulations. The agreement serves to document the discharge of secured obligations, release of security interests, and includes provisions for de-registration from relevant public registers. It's particularly important in Malta's financial services sector, where proper documentation of security releases is crucial for maintaining clear title and avoiding future disputes.

What sections should be included in a Termination Of Security Agreement?

1. Parties: Identification of the security provider, security holder, and any other relevant parties

2. Background: Details of the original security agreement, date of creation, and reason for termination

3. Definitions: Key terms used in the agreement, including references to the original security agreement and related documents

4. Confirmation of Discharge: Confirmation that secured obligations have been fully satisfied or waived

5. Termination: Express termination of the security agreement and release of security interests

6. Release and Discharge: Formal release of all security interests, charges, and encumbrances

7. Return of Documents: Provisions for the return of any security documents or certificates

8. De-registration: Requirements for removing security interests from relevant registers

9. Representations and Warranties: Confirmations regarding authority to terminate and absence of third-party claims

10. Governing Law and Jurisdiction: Confirmation of Maltese law governance and jurisdiction

What sections are optional to include in a Termination Of Security Agreement?

1. Partial Termination Provisions: Used when only certain security interests or assets are being released while others remain in force

2. Surviving Provisions: Required when certain obligations or rights survive the termination

3. Further Assurance: Include when additional actions may be needed post-termination

4. Costs and Expenses: Include when there are specific arrangements for bearing termination-related costs

5. Third Party Rights: Required when there are other parties with interests in the security arrangement

6. Regulatory Compliance: Include when termination requires specific regulatory notifications or approvals

What schedules should be included in a Termination Of Security Agreement?

1. Original Security Agreement: Copy or details of the security agreement being terminated

2. Released Assets: Detailed list of assets over which security is being released

3. Required Filings: List of all registrations to be terminated and forms to be filed

4. Evidence of Discharge: Proof of satisfaction of secured obligations

5. Form of Public Notices: Templates for any required public notices of termination

6. Powers of Attorney: If required for executing de-registration or related actions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malta

Publisher

Genie AI

Cost

Free to use

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