Document background
A Third Party Security Agreement is commonly used in complex financing arrangements where additional security is required beyond the principal debtor's own assets. Under English and Welsh law, this document creates enforceable security interests over the third party's assets, which can include both tangible and intangible property. The agreement must satisfy statutory requirements for creating valid security interests and typically requires registration at Companies House. It's particularly common in group company structures, project finance, and real estate transactions where parent companies or related entities provide security for subsidiaries or joint venture partners.
