Module 4 · Chapter 10

Release, Priority and the File You Keep

When a secured loan is repaid, the lender must give its security back, place by place. This chapter covers the release, the deed of priority a second lender would sign, and the file you keep.

≈ 11 min read 8-question test

In this chapter

  • When the Bank must release its security, and why it may wait
  • The four steps that give the security back, one for each place it sits
  • What a deed of priority does, and what the file must prove

10.1Release in one paragraph

On 30 April 2031 the Company makes its last payment to the Bank, and both facilities end. The Company now wants its assets back free of any claim, and giving them back is a release. A release does not happen by itself, because the Bank must act, at the Company's request and cost. The security sits in four places, so the release takes four steps.

Key point

Repayment does not free the assets. The Bank's release does, and it is owed only once two conditions are met.

Also in this chapter

  1. When the security ends
  2. Why the Bank may wait to release
  3. How the security comes off, place by place
  4. What a deed of priority would have done
  5. What the file must prove
  6. Your job

Preview

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