Mortgages and Charges

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How to Create a Charge or Mortgage

In Ireland, lenders secure their loans through two principal forms of security interest in the borrower’s assets: a charge and a mortgage. The primary difference between the two is that the holder of a charge does not take title to the secured asset, while the holder of a mortgage does […]

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What is a Charge?

A charge is an equitable interest in an asset to secure a loan. It does not transfer ownership of the asset to the lender or require possession of the asset by the lender. If the loan is repaid, the charge terminates. If the loan is not repaid, the borrower has […]

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What is a Mortgage?

A mortgage is the most powerful form of security interest because it actually transfers title of the asset to the lender as security for the loan, subject to an agreement to transfer ownership back to the borrower when the loan is repaid. As a result, it is not possible for […]

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Perfection of a Charge or Mortgage

Both charges and mortgages must be “perfected” in order to be valid against the borrower and its other creditors. To be perfected in Ireland, details of the charge or mortgage must be delivered to the Companies Registration Office (“CRO”) and registered within 21 days of creation of the security interest […]

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