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Pledge Note Template for Ireland

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Key Requirements PROMPT example:

Pledge Note

"I need a Pledge Note for a €500,000 business loan from ABC Bank Ireland, secured against our company's manufacturing equipment, with quarterly interest payments and final repayment due March 2025."

Document background
The Pledge Note serves as a critical document in secured lending transactions under Irish law, combining the features of a promissory note with a security agreement. It is typically used when a borrower needs to evidence a debt obligation while simultaneously providing security over specific assets to the lender. The Pledge Note must detail the principal amount, interest rate, payment terms, and specific assets being pledged as security. It needs to comply with Irish legislation, including the Bills of Exchange Act 1882 and, where applicable, the Companies Act 2014 for corporate pledgors. The document is particularly useful in commercial lending, asset-based financing, and investment transactions where tangible or financial assets are available as collateral.
Suggested Sections

1. Parties: Identification of the Pledgor and Pledgee with full legal names and addresses

2. Background: Context of the pledge arrangement and reference to any related agreements

3. Definitions: Key terms used throughout the document

4. Promise to Pay: Core payment obligation including amount, interest rate, and payment schedule

5. Pledge and Security: Description of pledged assets and creation of security interest

6. Representations and Warranties: Pledgor's declarations regarding ownership and right to pledge assets

7. Covenants: Ongoing obligations of the Pledgor regarding the pledged assets

8. Events of Default: Circumstances constituting default and consequences

9. Enforcement Rights: Pledgee's rights and remedies upon default

10. Notices: Communication requirements and contact details

11. Governing Law: Specification of Irish law as governing law

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Security Agent Provisions: Required when a security agent holds the pledge on behalf of multiple beneficiaries

2. Tax Gross-up: Include when tax implications need to be addressed explicitly

3. Currency Provisions: Needed when dealing with multiple currencies or currency conversion

4. Further Assurance: Additional commitments to perfect the security interest, used in complex transactions

5. Power of Attorney: Optional authority granted to Pledgee for enforcement purposes

6. Assignment and Transfer: Include when transfer rights need to be specifically addressed

7. Costs and Expenses: Detailed provisions on transaction costs and enforcement expenses

Suggested Schedules

1. Schedule 1 - Pledged Assets: Detailed description and/or inventory of pledged assets

2. Schedule 2 - Payment Schedule: Detailed payment terms, amounts, and dates

3. Schedule 3 - Form of Notice: Template for any required notices

4. Schedule 4 - Perfection Requirements: List of actions required to perfect the security interest

5. Appendix A - Asset Valuation: Valuation methodology or initial valuation of pledged assets

6. Appendix B - Related Agreements: List and copies of related agreements referenced in the pledge note

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



























Clauses






















Relevant Industries

Financial Services

Banking

Investment Management

Private Equity

Real Estate

Manufacturing

Retail

Technology

Healthcare

Professional Services

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretariat

Credit

Banking Operations

Investment Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Compliance Officer

Risk Manager

Investment Manager

Credit Officer

Security Trustee

Corporate Secretary

Financial Controller

Banking Relationship Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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