Current Position
The common law rule that a “deed must be written on paper or parchment and not on any other substance” (Goddard’s Case from 1584) is still in force in Northern Ireland. The Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)) abolished any rule of law which restricted the substances on which a deed may be written – sadly this legislation only applies in England and Wales.
Therefore because of the doubt created by Goddard’s Case it is now accepted practice in Northern Ireland that all deeds (so debentures, legal mortgages, deeds of priority etc) are signed in wet-ink as opposed to e-signature.
Additionally, the Land Registry of Northern Ireland (NI Land Registry) only accepts wet-ink legal mortgages for registration and no electronic filings of security documents are permitted at the NI Land Registry.
Additional Signing Requirements
The Companies Act 2006 (CA 2006) applies in Northern Ireland and therefore the s44 CA 2006 execution formalities apply to Northern Irish deeds.
However the NI Land Registry imposes additional requirements on execution generally which impacts on the execution of documents requiring registration at the registry. In order to comply with these additional NI Land Registry requirements – directors in Northern Ireland need to have their signatures either witnesses by a solicitor (in which case only a single witness is required) or if the witness is not a solicitor, then two witnesses are required.
NI documents and processes
Lenders and borrowers transacting in Northern Ireland should be cautious of using standard template English law finance and security documents on Northern Irish cases. Specific adaptations need to be made to documents and processes to make them effective on a Northern Irish lending transaction.
Please do not hesitate to contact us to discuss your loan and security documentation for use on Northern Irish lending transactions.
Editorial prepared by Andrew McGrath, Solicitor, Banking & Finance @ MIlls Selig
Mills Selig boasts a highly experienced Banking & Finance team which regularly acts for bank lenders, international banks, mezzanine funders and alternative lenders
Andrew McGrath, Solicitor, Banking & Finance
Andrew is a solicitor specialising in banking and finance law. He has a strong foundation in commercial legal practices, and provides support on a range of financial transactions, including loan agreements, debt financing, and regulatory compliance.
T: 028 9024 3878
E: Andrew.McGrath@MillsSelig.com
W: https://millsselig.com/team/andrew-mcgrath/
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