We may seek security for any credit facility that we offer. Typically the security sought will be a mortgage, charge, pledge or assignment of certain property or assets. In addition, we may request a company guarantee or personal guarantee. Such security/guarantees reduces the risk arising for us in the context of a particular lending proposition.
We will always look for security appropriate to the risk that we incur by providing a credit facility. In this regard, the Bank takes account of the nature, liquidity and value of the collateral offered against the level of credit being sought.
We do not seek to impose unreasonable collateral requirements for the provision of credit or unreasonable personal guarantee requirements.
It is our policy to enforce our rights under any loan, security or guarantee documentation to the fullest extent possible. This includes seeking accrued interest and other charges arising, as well as legal, selling and other related costs. Where liquidation of collateral is not sufficient to discharge the entirety of the debt our policy, unless otherwise agreed with a borrower/guarantor in writing, is to pursue a borrower/guarantor for the balance of the obligations arising. This may include but is not limited to the commencement of bankruptcy or insolvency proceedings.
Offering security or a guarantee for a loan needs serious consideration. The various forms of security and guarantees are each subject to their own terms and conditions and to applicable law. Ultimately, if a borrower defaults on a facility, the end-result in all instances is that some or all collateral may never be returned to the borrower.
We recommend that borrowers and guarantors take independent advice, including but not limited to independent legal advice, before agreeing to offer collateral as security for a loan and/or to act as guarantor.
When it comes to enforcement of mortgages on a consumer's principal private residence in Ireland and personal guarantees secured over a guarantor's principal private residence in Ireland, we adhere to the Central Bank of Ireland’s Code of Conduct on Mortgage Arrears. Please ask a staff member for further details if required.
Return of security
When all facilities for which security is given have been repaid in full, we will at your request, promptly return any security that we held for those facilities. To avoid misunderstanding, we ask that any such request should be in writing.
On occasion we will request a personal guarantee in respect of a credit facility. A guarantor may also be asked to provide collateral by way of security. So, for example, the guarantor may be requested to provide a mortgage over their principal private residence by way of security against the credit facility. Such guarantees and collateral arrangements reduce the risk arising for us in the context of a particular lending proposition. Guarantees and collateral arrangements may also enable us to provide borrowers with a more competitively priced credit facility. We never seek to impose what we consider to be unreasonable personal guarantee requirements.