Security & Collateral · glossary
The deed by which a company gives a lender security over its assets, usually all of them. The Company's has sixteen clauses and five schedules: a legal mortgage, fixed charges, an assignment of the insurance and a floating charge over the rest. Two directors signed it as a deed. The Debenture · Execution · Chapter 1
Explained in Chapter 1, What Security Is For, of Security & Collateral.
A lender takes security when it wants more than a promise to repay. If the loan is not repaid, it can have particular assets of the borrower sold and pay itself first from the price. A company usually gives all its security to a bank in one document, a debenture. You are a trainee in the banking team at Harlow Vance LLP in Birmingham, and you act for the bank.Read Chapter 1, What Security Is For →
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