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Security Interest Contract for Ireland

Security Interest Contract Template for Ireland

A legally binding agreement governed by Irish law that creates and evidences a security interest over specified assets in favor of a secured party. The document establishes the secured party's rights over the collateral, including enforcement rights upon default, and complies with Irish legal requirements for creating valid security interests. It incorporates provisions from the Companies Act 2014, relevant EU regulations, and other applicable Irish legislation, addressing registration requirements, perfection of security, and enforcement mechanisms. The agreement provides detailed provisions for the creation, maintenance, and enforcement of the security interest while ensuring compliance with Irish corporate and property law.

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What is a Security Interest Contract?

The Security Interest Contract is a fundamental document in secured lending transactions under Irish law, used to create and perfect security interests over various types of assets. This document is essential when a lender requires security for financial obligations, whether in corporate lending, real estate financing, or other secured transactions. The agreement must comply with Irish legal requirements, including the Companies Act 2014 and relevant EU regulations, particularly regarding creation, registration, and enforcement of security interests. It typically includes detailed provisions about the secured assets, obligations, enforcement rights, and representations and warranties. The document is crucial for protecting the lender's interests while ensuring the security provider's rights are appropriately balanced within the Irish legal framework.

What sections should be included in a Security Interest Contract?

1. Parties: Identification of the security provider (chargor/mortgagor) and security taker (chargee/mortgagee)

2. Background: Context of the security arrangement, reference to any underlying facility or credit agreement

3. Definitions and Interpretation: Key terms used throughout the document, interpretation rules, and construction

4. Creation of Security Interest: Core provisions creating the security interest, including nature and scope of the security

5. Secured Obligations: Definition and scope of the obligations being secured

6. Representations and Warranties: Security provider's confirmations regarding ownership, capacity, and authority

7. Covenants: Ongoing obligations of the security provider regarding the secured assets

8. Perfection and Further Assurance: Requirements for perfecting security and obligations to execute further documents

9. Enforcement: Rights and remedies of the security taker upon default

10. Power of Attorney: Appointment of security taker as attorney to perfect or enforce security

11. Discharge and Release: Provisions regarding release of security upon satisfaction of secured obligations

12. Miscellaneous: Standard boilerplate provisions including notices, amendments, and governing law

What sections are optional to include in a Security Interest Contract?

1. Floating Charge Provisions: Required when creating a floating charge over company assets, including crystallization events

2. Real Property Provisions: Additional provisions required when security includes real estate

3. Financial Collateral Provisions: Specific provisions required for financial collateral arrangements under EU regulations

4. Consumer Protection Provisions: Required when the security provider is a consumer

5. Intellectual Property Provisions: Specific provisions for security over IP rights

6. Insurance Provisions: Detailed requirements regarding insurance of secured assets

7. Bank Account Security Provisions: Specific provisions for security over bank accounts

8. Priority and Subordination: Required when dealing with multiple security interests or intercreditor arrangements

What schedules should be included in a Security Interest Contract?

1. Schedule 1 - Secured Assets: Detailed description of all assets subject to the security interest

2. Schedule 2 - Secured Obligations: Detailed description of all obligations secured by the agreement

3. Schedule 3 - Forms of Notices: Template notices for perfecting security (e.g., notices to banks, insurance companies)

4. Schedule 4 - Real Property Details: Details of any real property subject to the security interest

5. Schedule 5 - Intellectual Property: Details of any intellectual property rights subject to the security

6. Schedule 6 - Bank Accounts: Details of bank accounts subject to the security

7. Schedule 7 - Companies Registration Office Forms: Required forms for registration of company charges

8. Appendix 1 - Existing Security Interests: List of any existing security interests affecting the secured assets

Authors

Alex Denne

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

Jurisdiction

Ireland

Publisher

Ƶ

Document Type

Security Agreement

Cost

Free to use
Relevant legal definitions










































Clauses




































Relevant Industries

Banking

Financial Services

Real Estate

Manufacturing

Technology

Retail

Agriculture

Construction

Energy

Healthcare

Telecommunications

Transportation

Professional Services

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Corporate Secretarial

Credit

Corporate Finance

Banking

Real Estate

Operations

Relevant Roles

Legal Counsel

Finance Director

Corporate Lawyer

Risk Manager

Credit Manager

Compliance Officer

Security Trustee

Company Secretary

Chief Financial Officer

Treasury Manager

Banking Lawyer

Property Lawyer

Corporate Finance Manager

Loan Officer

Legal Director

Transaction Manager

Industries








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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