This Deed of Charge should only be used where a Company granting the charge is securing a debt or loan and the party being given the charge (the Mortgagee) is also a Company.

This Deed of Charge contemplates that the Mortgagee to which the charge is being given has lent money to the Company granting the charge and may lend further money to the Company. PLEASE NOTE: this is a 40 page document.

A charge is like a mortgage. A charge is sometimes called a mortgage debenture or simply a debenture and these are simply alternative terms that reflect the secured nature of a charge. The effect of a charge is that it creates a security by way of equitable mortgage over the Company's assets which are secured by the charge, provided it is registered as required under Section 252 of the Corporations Act 2001 (cth).

A charge must be registered within 45 days after its creation (section 263 of the Corporations Act); if a charge is not registered it may not give security over the assets the subject of the charge.

A company must keep a Register of charges in order to comply with Section 271 of the Corporations Act 2001 (cth).

This Deed of Charge contemplates a company granting a fixed and floating charge to another company (the mortgagee). This deed also contemplates that the mortgagee may in future lend further money/extend further credit to the company.

Please Note: LawLive does not give legal advice and we strongly recommend that you seek the advice of a lawyer before using this template and prior to execution of this Deed of Charge. Charges involve complex legal rights and obligations and whether you are the Company or the Mortgagee we strongly urge you use a lawyer to assist and advise in finalising this document.

This Deed of Charge attaches Notes Specific to a Charge and Checklist for a Charge.

This Deed of Charge includes the following provisions:

1. Definitions
2. Charge
3. The Company's Title
4. The Company's Payment and Other Obligations
5. The Company's Obligations Regarding the Charged Property
6. Insurance
7. Environmental Laws
8. Provisions which Apply if the Company is Trustee of a Trust
9. Licences
10. Enforcement of Security
11. Appointment of Receiver
12. Application of Money
13. Additional Rights and Protections for the Mortgagee
14. Protection for People Dealing with the Mortgagee
15. How to Give a Notice Under this Charge