Chargee Definition

GLOSSARY

Published by a ��Ƶ Banking & Finance expert

What does Chargee mean?

The person who has the benefit of a charge, usually a financier.

View the related checklists about Chargee

Due diligence—occupational lease alienation provisions—checklist

Due diligence—occupational lease alienation provisions—checklist On any due diligence exercise on the acquisition of a property for investment purposes, it is essential to consider the ability of the occupational tenants to assign, charge and underlet their respective premises. Any provisions that are too flexible may have an adverse impact on value as it may lead to covenant dilution. In an occupational lease with an open market rent review, any provisions that are too restrictive may have an adverse impact on value, as they may be considered onerous. Assignment Can the tenant assign? Assignment may be: • prohibited • permitted without consent—this will be the case if the lease is silent; however, note that a covenant not to part with possession prohibits assignment, or • permitted with landlord’s consent—if assignment is permitted with landlord’s consent, the covenant is always subject to a proviso that consent is not to be unreasonably withheld (regardless of whether this is specifically imposed by the lease) If assignment is prohibited and there is an open market...

Perfecting security in real estate finance transactions—checklist

Perfecting security in real estate finance transactions—checklist This Checklist sets out the steps which property lawyers need to take to perfect security in a real estate finance transaction. Real estate finance lenders will typically want to take a full security package over all of the assets relating to the real estate. A real estate lawyer in a multi-disciplinary team will likely be responsible for arranging or inputting into the following securities and documentation: • security over the land, rental income, insurance proceeds, development and construction and contractual rights • reviewing the management agreement and negotiating a duty of care agreement (although in a multi-disciplinary team, this is sometimes handled by the banking and finance lawyer) • dealing with completion undertakings and post completion registration of the legal charge at Companies House and HM Land Registry as well as giving third party notices regarding rent payment, notice of charge where necessary of assignment of contractual rights or warranties See Practice Notes: Security in real estate finance transactions, Taking security over land...

Fixed and floating charges

There are four main types of security available under English law: •mortgage•charge•pledge, and•lienThis Practice Note explains:•the nature of a charge (compared with other security interests)•the nature of a fixed charge compared to a floating charge•the types of assets which are typically the subject of fixed charges and the types of assets which are typically the subject of floating charges, and•priority as between fixed and floating chargesFor information on how to take a fixed or floating charge, see Practice Notes: Floating charges and Key features of debentures.For information on mortgages, see Practice Note: Mortgages.For more information on pledges, see Practice Note: Pledges.For information on liens, see Practice Note: Types of security—Liens.Special rules apply to agricultural charges. For more information, see Practice Note: Agricultural charges under the Agricultural Credits Act 1928.What is a charge? A charge has the following characteristics: •it confers on the secured party (the chargee) an equitable proprietary interest in the charged asset (for more information on the meaning of 'equitable', see Legal versus equitable security interests and...

Crystallisation of floating charges

The key feature of a floating charge is that, until it crystallises, the chargor is entitled to deal with the charged assets in the normal course of business without any further consent from the chargee. By contrast, a fixed charge requires the chargee to exercise a significant degree of control over the charged asset.This Practice Note examines:•the effect of crystallisation of a floating charge•types of event that trigger or may trigger crystallisation, including automatic crystallisation, and•partial crystallisationFor further detail on the nature of fixed and floating charges, see Practice Note: Fixed and floating charges. For information on the advantages and disadvantages of floating charges, see Practice Note: Floating charges—advantages and disadvantages. For information on how to take a floating charge, see Practice Note: Floating charges. See also Security—frequently asked questions.The effect of crystallisationImpact of crystallisation on priorityUpon crystallisation of a floating charge, the floating charge attaches to all existing assets that are within the scope of the charge and becomes fixed. The main consequence of crystallisation is that the chargor's...

Discover our 105 Practice Notes on Chargee

Letter licence to charge

Letter licence to charge Date: [date] Landlord: [name of Landlord] of [address] [incorporated in England and Wales with company registration number [number]] Tenant: [name of Tenant] of [address] [incorporated in England and Wales with company registration number [number]] Property: [description] Lease: A lease of the Property dated [date] made between (1) [[name of Landlord] OR [name of original landlord]] [, OR and] (2) [[name of Tenant] OR [name of original tenant]] [and (3) [name of original guarantor or any other third party]] Conditional consent to charge We refer to your application for consent to charge the whole of your Lease of the Property to [name of bank or other chargee] (‘the Charge’) We consent to the Charge on the following conditions: 1 All rents and other sums due under the Lease must have been paid in full up to the date on which the Charge is completed. 2 The Charge must be completed

Application for landlord’s consent to charge

Application for landlord’s consent to charge [To be printed on headed paper of tenant’s solicitors] Dear [insert organisation name] Lease of [insert description of premises] (the Premises) dated [insert date] and made between [insert name of landlord][and][insert name of tenant][and [insert name of guarantor]] (the Lease) We act for [insert name of tenant], your tenant under the Lease. Pursuant to clause [insert reference to charging clause] of the Lease, please treat this letter as the tenant’s formal application to request your consent to charge the Lease to [insert name of proposed chargee][of [insert address]. OR (company registration

Dive into our 20 Precedents related to Chargee

How does a company remove a charge from the charges register at Companies House that has already been released if the beneficiary of the charge is a dissolved company or has been taken over by another company?

How does a company remove a charge from the charges register at Companies House that has already been released if the beneficiary of the charge is a dissolved company or has been taken over by another company? There is no statutory requirement for a chargor to notify Companies House that it has either fully or partially satisfied a debt or had its security released. However, such notification will be in the best interests of the chargor so that any potential investors and lenders are aware that the debt has been satisfied and/or its assets are unencumbered. Where a charge has been released in full, to notify Companies House, the chargor should submit form MR04 (Statement of satisfaction in

A chargor (an individual) is granting a legal charge to a chargee (a company). Can an employee of the chargee witness the signature of the chargor?

A chargor (an individual) is granting a legal charge to a chargee (a company). Can an employee of the chargee witness the signature of the chargor? There does not appear to be any evidence that an employee of the chargee cannot witness the chargor’s signature. Practice Note: Property deeds—use and execution of deeds in property transactions, provides guidance on who may witness the signature of a deed by an individual: ‘There are certain requirements in relation to the witness. A party to a deed cannot also witness the signature of another party to the deed (Seal v Claridge (1881) at 519). There is, however, no statutory requirement for a witness to be independent, although this would undoubtedly be a good practice.

See the 81 Q&As about Chargee

Charge over IP addresses—fixed or floating? (Re UKCloud Ltd (in liquidation))

Banking & Finance analysis: This News Analysis looks at the case of Re UKCloud Ltd (in liquidation) in which the court was asked to give directions on whether a charge over IP addresses was fixed or floating.

Banking & Finance—May 2024 case round-up

Banking & Finance analysis: This News Analysis provides a summary of the cases we have alerted in Banking & Finance for May 2024.

Read the latest 51 News articles on Chargee

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

Case studies

"It really is saving us a huge number of hours over the days, weeks and months. Having more relevant support at hand, not having to draft or review documents them from scratch - it all adds up."

Southampton FC

Access all documents on Chargee

GET ACCESS NOW

Top

Trial

��Ƶ

GLOSSARY