Assignment (by way of security) meaning

This Checklist This Checklist explains the actions property solicitors must take to perfect security in a real estate finance transaction. Real estate finance lenders will typically seek a comprehensive security package over all assets connected with the real estate. A real estate solicitor within a multi-disciplinary team will commonly arrange or contribute to 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 and, where necessary, assignment of contractual rights or warranties See Practice Notes: Security in real estate finance transactions, Taking security over land and Taking security over unregistered land and Taking and perfecting...

In this issue: Key DR developments Claims and remedies Cost and funding Case management Scottish Dispute Resolution New content Dates for your diary Useful information Daily and weekly news alerts Key DR developments Court information HMCTS updates Form N215 certificate of service HM Courts & Tribunals Service (HMCTS) has issued a revised English Form N215 Certificate of Service for civil proceedings, which also brings in a new statement of truth. While the layout has been updated, the details required remain unchanged, with extra notes added to assist with completing the form. For further detail, see: HMCTS updates Form N215 certificate of service—LNB News 27/01/2026 36. Additional permanent courtrooms to boost capacity The government will make four former Nightingale Courts in Fleetwood, Telford, Chichester and Cirencester permanent, creating 11 additional courtrooms across England and Wales to increase capacity for criminal, family and civil work and help cut delays. For further detail, see:...

Abraaj Investment Management Ltd (in liquidation) and other companies v Kes Power Ltd and others [2026] EWHC 65 (Comm) What are the practical implications of this case? The recent High Court judgment in Abraaj Investment Management v Kes Power closely analyses assignment principles within secured lending. In particular, the court considers when estoppel can aid a lender confronted with defective or uncertain security. The ruling also explores several adjacent issues: the potential for assignments to be implied, whether ‘no assignment’ clauses are tempered by a reasonableness qualification, and matters of consideration in acknowledgements of notice. While estoppel provided the lender with a solution on the facts, the decision emphatically reinforces a fundamental point: only the entity to which the debt is actually owed should be the assignor. The realities of group operations can obscure the true creditor, meaning it is not always obvious which company holds the right to assign. Practitioners may act on client instructions regarding the identity of the assignor and include in legal opinions a...

Banking & Finance—December 2025 and January 2026 case round-up Skyros Maritime Corp and another company v Hapag-Lloyd AG ‘Skyros’ & ‘Agios Minas’ [2025] EWCA Civ 1529 Shipping finance—charterparty damages for late redelivery of vessels The Court of Appeal allowed the owners’ appeal from the Commercial Court concerning damages arising from the delayed redelivery of time‑chartered container ships. The vessels, ‘SKYROS’ and ‘AGIOS MINAS’, were returned late in breach of the charterparties by Hapag‑Lloyd, after the owners had already arranged to sell them. The central question was whether the owners could obtain substantial damages—calculated as the gap between market and charter rates—for the overrun period even though they had no plan to re‑fix the ships. The Court of Appeal confirmed they could. Applying the settled maritime principle, damages for late redelivery are assessed by reference to the market rate, irrespective of whether the owner would, in fact, have gone back into the market to secure a new fixture. When quantifying loss, the owners’ post‑redelivery plans were...

The use of invoice discounting and factoring of receivables as business finance has expanded markedly in the UK over the past 25 years. Introduction to receivables purchase transactions Invoice discounting and factoring fall within receivables purchase arrangements under which a supplier of goods and/or services (often called the seller or the supplier) transfers, typically by way of assignment, debts owed to it by the purchaser of those goods and/or services (commonly referred to as the buyer or the account debtor), usually together with all associated rights. These receivables purchases are frequently completed at a discounted purchase price. That said, receivables can also be acquired for an amount equal to their face value, with the supplier paying the purchaser a purchase fee. For a variety of reasons, suppliers may opt to sell receivables (on a no recourse or limited recourse basis) in preference to borrowing...

Practice Note: Priority between security interests This Practice Note provides illustrations of how the rules on priority may operate in practice with reference to the relevant English law principles. It complements, and should be read alongside, our other Practice Notes on priority. New examples are added to this Practice Note on a regular basis. If you encounter a priority issue in practice that you would like us to cover, please use the LexisAsk function to inform us. Practice Note: Priority between security interests outlines the rules on priority from a more technical standpoint and should be consulted for the black letter law that supports the practical examples in this Practice Note. It is important to recognise that English law priority rules are complex and are widely acknowledged not to be clear in every respect. Outcomes can also be influenced by the parties’ actions, meaning law firms will often decline to provide an opinion on the priority of security and specialist advice may need to be obtained if there is...

Development documentation sits at the heart of any real estate finance deal that involves building out a site. These papers set out the scope of the scheme, define how the project team interacts, allocate duties, and fix the expected costs. The worth of a property can be heavily undermined if the construction works are left unfinished. It is in the funder’s interests, just as much as the borrower’s, that a scheme is delivered on programme and within budget. Commonly, the lender takes security over the borrower’s contractual rights under the principal development agreements by taking an assignment for security purposes, which enables the lender, should problems emerge with the borrower, to call upon the counterparty to step in and carry out the contract obligations to completion, as clearly set out therein...

Notice of assignment [ To be printed on the headed notepaper of the assignor ] To: [ insert name and address of the relevant insurer ] Date: [ • ] Dear [ insert organisation name ], [ insert brief description of the relevant insurance policy ] We refer to the assignment of insurance policies (the ‘Assignment’), dated [ • ], entered into by us as assignor (the ‘Assignor’) in favour of [ insert name of lender ] (the ‘Lender’). We also refer to the insurance policy placed by us as the policy holder, with you as the insurer, concerning [ insert brief description of relevant policy and risks covered ], with policy number [ • ], together with any policy arranged to renew, substitute or replace that insurance (the ‘Insurance Policy’). Please take notice that, pursuant to the terms of the Assignment, we have assigned to the Lender, by way of security, all rights and claims that may from time to time...

This Deed is entered into on [ insert day and month ] 20[ insert year ], as of that date Parties [ insert name of Assignor ], a company incorporated in England and Wales with company number [ insert company number ], whose registered office is at [ insert address ] (the Assignor); and [ insert name of Security Agent ], acting as security agent and trustee for the Finance Parties pursuant to the terms and conditions contained in the [ [ Facilities Agreement ] OR [ Intercreditor Agreement ] OR [ Security Trust Deed ] ] (the Security Agent). Recitals: (A) The Finance Parties have consented to provide the loan facilities, subject to the terms and conditions set out in the Facilities Agreement (as defined below). (B) A condition precedent to the availability of the loan facilities is that the Assignor enters into this Deed to provide security in favour of the Security Agent in respect of...

This Assignment is dated [ insert day and month ] 20[ insert year ]. Parties 1 [ insert name of Assignor ], a company incorporated in England and Wales with registered number [ insert company number ], having its registered office at [ insert address ] (the Assignor); and 2 [ insert name of Lender ] of [ insert address ] (the Lender). Background The Lender has agreed to provide a loan facility to the Assignor on the terms and conditions contained in the Facility Agreement (as defined below). As a condition precedent to the loan facility being available, the Assignor must enter into this Assignment to create security in favour of the Lender for the Secured Obligations (as defined below)...