Deed Of Release From A Charge (Asset Sales)

In a business/asset sale, it is common for some of the seller’s assets to have been used as security for lending and to be subject to fixed charges (for example under loans, debentures or mortgages).

If the relevant assets are not released from the fixed charge(s), the buyer may acquire them subject to those charge(s). This Deed Of Release From A Charge (Asset Sales) is intended to deal with that risk by documenting the release.

What does Deed Of Release From A Charge (Asset Sales) do?

It provides a deed of release to be used where charged assets are being sold and the parties need the chargee to release its fixed charge over the relevant assets as part of the transaction.

What does Deed Of Release From A Charge (Asset Sales) cover?

• Release of the relevant asset(s) from the fixed charge(s) so the buyer does not acquire them subject to the charge.
• An optional provision dealing with the seller paying for other matters required to give effect to the assignment.
• Execution as a deed, with execution requirements for the chargee and the seller.

When should you use Deed Of Release From A Charge (Asset Sales)?

Use this deed where assets being sold are subject to a fixed charge and the agreed completion arrangements require that charge to be released.

Deed Of Release From A Charge (Asset Sales) is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.