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Collateral Assignment Of Beneficial Interest Template for England and Wales

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Key Requirements PROMPT example:

Collateral Assignment Of Beneficial Interest

"I need a Collateral Assignment of Beneficial Interest to secure a £5 million loan from ABC Bank, where we're assigning our beneficial interest in a commercial property trust as collateral, with completion required by March 2025."

Document background
A Collateral Assignment of Beneficial Interest is commonly used in secured financing transactions under English and Welsh law when a party wishes to grant security over their beneficial interest in assets without transferring legal title. This document is particularly relevant when the underlying assets are held in trust or when direct security over assets is impractical or undesirable. The assignment creates an enforceable security interest while preserving the assignor's day-to-day rights until default. It must address perfection requirements, enforcement mechanisms, and comply with relevant legislation including the Law of Property Act 1925 and Financial Collateral Arrangements Regulations.
Suggested Sections

1. Parties: Identifies the assignor, assignee, and any other relevant parties

2. Background: Explains the context and purpose of the assignment

3. Definitions: Defines key terms used throughout the document

4. Assignment: Details the beneficial interest being assigned as collateral

5. Security Interest: Specifies the nature and extent of the security interest created

6. Representations and Warranties: Assignor's statements regarding ownership and authority to assign

7. Covenants: Ongoing obligations of the parties

8. Enforcement: Rights and remedies upon default

9. Governing Law: Specifies English and Welsh law as governing law

Optional Sections

1. Further Assurance: Additional actions parties may need to take to perfect the security

2. Power of Attorney: Grants assignee power to act on assignor's behalf when direct enforcement rights are required

3. Notice Provisions: Requirements for serving notices when formal notice procedures are important

Suggested Schedules

1. Description of Beneficial Interest: Detailed description of the beneficial interest being assigned

2. Form of Notice: Template for notifying relevant parties of the assignment

3. Underlying Documents: Copies or details of documents creating the beneficial interest

4. Security Documents: Related security documentation if part of larger security package

Authors

Alex Denne

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

Relevant legal definitions

























Clauses

























Industries

Law of Property Act 1925: Primary legislation governing the creation and transfer of property interests, including definitions of legal and equitable interests, and requirements for assignments and notice

Law of Property (Miscellaneous Provisions) Act 1989: Contains requirements for executing deeds and formal requirements for creating certain interests in property

Financial Collateral Arrangements (No.2) Regulations 2003: Regulates financial collateral arrangements, including requirements for perfection of security interests and enforcement rights when collateral involves financial instruments

Insolvency Act 1986: Addresses the impact of insolvency on security interests, including registration requirements and priority rules

Trusts of Land and Appointment of Trustees Act 1996: Governs beneficial interests in land held in trust, including rights and duties of trustees and beneficiary rights

Financial Services and Markets Act 2000: Regulates financial activities and sets out regulatory compliance requirements for financial arrangements

Common Law Principles: Established legal principles regarding assignment of choses in action, equitable assignments, notice requirements, and priority rules

Companies Act 2006: Registration requirements and regulations when corporate entities are involved in the arrangement

Land Registration Act 2002: Registration requirements and regulations when the beneficial interest relates to real property

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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