The Charge over Bank Account is given by the Account Holder to a Lender as security for a loan/ facility provided by the Lender. This document contains four parts: the deed, notice from the account holder, notice from the lender and notice from the bank.
The Account Holder with full title guarantee hereby assigns absolutely by way of mortgage to the Lender all its right, title and interest in and to the Deposit as continuing security for the payment and discharge of the Secured Amounts. If at any time the Secured Amounts shall have been paid and discharged in full and the Lender shall be under no commitment, obligation or liability of any kind (present or future, actual or contingent) in relation to the Facility Agreement, the Lender will at the request and cost of the Account Holder re-assign the Deposit to the Account Holder or otherwise discharge the security hereby constituted.
The security hereby created shall become enforceable immediately on service of a demand for payment of any of the Secured Amounts and at any time thereafter, the Lender may call for payment to it of the Deposit and thereafter apply all or any part of the Deposit [together with any interest thereon in respect of any period after the security has become enforceable] towards the discharge of the Secured Amounts in such manner as it deems fit. By doing so, the Lender is hereby irrevocably authorised and empowered to give a valid discharge in relation to the Deposit (or any part of it) to the Bank.
This document should be carefully read by the Bank account holder and the Lender.
Both the account holder and their witness, as well as the lender, should sign and return a copy, and once signed, both parties should get a copy.
If any party wishes to amend the agreement in the future, all parties should agree to do so, and the original agreement and amendments should be recorded in writing and signed by all parties.
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Please get all parties to review the document carefully and make any final modifications to ensure that the details are correct before signing the document. Each party should have a copy of the executed document. The document should be signed by the authorised signatory (or 2 directors for a company) and witnessed to complete the formality.