Promissory Note Mortgage Template for Ireland

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Key Requirements PROMPT example:

Promissory Note Mortgage

"I need a Promissory Note Mortgage under Irish law for a €2.5M commercial property purchase in Dublin, with three corporate guarantors and quarterly interest payments, including specific provisions for potential property development."

Document background
The Promissory Note Mortgage is commonly used in Irish lending transactions where lenders require both a clear payment obligation and property security. This document type is particularly useful in both commercial and residential lending scenarios where the parties wish to combine the negotiability features of a promissory note with the security benefits of a mortgage. The document must comply with Irish property law, including the Land and Conveyancing Law Reform Act 2009, and financial regulations. It typically includes detailed terms about the payment obligation, property description, enforcement rights, and security provisions. The structure is designed to be registered with the Irish Land Registry, providing the lender with a registered security interest while maintaining the payment obligation's negotiability.
Suggested Sections

1. Parties: Identifies the Lender (Mortgagee) and Borrower (Mortgagor) with full legal names and addresses

2. Background: Explains the context of the loan and mortgage arrangement, including reference to any prior agreements

3. Definitions: Defines key terms used throughout the document, including Property, Secured Obligations, and Security Interest

4. Promise to Pay: The core promissory note element specifying the principal amount, interest rate, and payment terms

5. Grant of Security Interest: Creates the mortgage by charging the property as security for the promissory note obligations

6. Representations and Warranties: Borrower's confirmations regarding property ownership, authority to enter agreement, and absence of encumbrances

7. Covenants: Borrower's ongoing obligations regarding property maintenance, insurance, and payment of taxes

8. Events of Default: Specifies circumstances constituting default and triggering enforcement rights

9. Enforcement Rights: Details the lender's rights and remedies upon default, including power of sale

10. Notices: Specifies how formal communications between parties must be made

11. Governing Law: Confirms Irish law governs the document and Irish courts have jurisdiction

Optional Sections

1. Guarantor Provisions: Required when a third party guarantees the borrower's obligations

2. Insurance Requirements: Detailed section needed for commercial properties or high-value residential properties

3. Special Payment Arrangements: Include when there are non-standard payment terms or methods

4. Property Management Obligations: Required for commercial properties or multi-unit residential properties

5. Assignment and Transfer: Include when the lender may want to sell or assign the loan

6. Further Advances: Include if the facility allows for additional borrowing under the same security

7. Priority Arrangements: Required when there are multiple charges or ranking of security interests

Suggested Schedules

1. Property Description: Detailed legal description of the mortgaged property, including folio numbers and boundaries

2. Payment Schedule: Amortization schedule showing payment dates, amounts, and interest calculations

3. Secured Obligations: Detailed description of all obligations secured by the mortgage

4. Form of Notice: Standard forms for various notices required under the agreement

5. Insurance Requirements: Detailed specifications for required insurance coverage

6. Special Conditions: Any special conditions or requirements specific to the property or borrower

7. Supporting Documents: List of supporting documents provided by borrower, including title deeds and planning permissions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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

Banking

Real Estate

Financial Services

Property Development

Construction

Legal Services

Insurance

Mortgage Lending

Commercial Property

Residential Property

Relevant Teams

Legal

Compliance

Credit Risk

Real Estate

Mortgage Operations

Property Management

Financial Control

Credit Administration

Document Management

Risk Assessment

Loan Administration

Relevant Roles

Loan Officer

Mortgage Advisor

Property Lawyer

Real Estate Attorney

Banking Compliance Officer

Credit Risk Manager

Property Developer

Real Estate Manager

Mortgage Underwriter

Legal Counsel

Conveyancing Solicitor

Financial Director

Credit Administrator

Property Portfolio Manager

Banking Relationship Manager

Industries
Land and Conveyancing Law Reform Act 2009: This is the primary legislation governing mortgages and property law in Ireland. It defines legal mortgages, sets out the rights and obligations of mortgagors and mortgagees, and provides the framework for mortgage enforcement.
Consumer Credit Act 1995: Regulates consumer credit and provides protection for consumers in credit transactions, including mortgage loans. Sets out requirements for credit agreements and disclosure obligations.
Registration of Title Act 1964: Governs the registration of property titles in Ireland and the recording of mortgages in the Land Registry, which is crucial for protecting the mortgagee's security interest.
Bills of Exchange Act 1882: Although an older act, it remains relevant as it governs promissory notes as negotiable instruments, defining their requirements and legal effects.
Central Bank Act 1997: Provides regulatory framework for financial institutions and includes provisions affecting mortgage lending and credit institutions.
European Union (Consumer Mortgage Credit Agreements) Regulations 2016: Transposes the EU Mortgage Credit Directive into Irish law, setting standards for mortgage lending and consumer protection in residential mortgage agreements.
Civil Law (Miscellaneous Provisions) Act 2011: Contains various provisions affecting property law and mortgages, including amendments to previous legislation.
Consumer Protection Code 2012: While not legislation per se, this Central Bank code sets out important requirements for mortgage lenders in their dealings with consumers.
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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