The following guide sets out 5 key steps relating to the
enforcement of security in default situations in Irish commercial
lending. There are of course many other aspects which would need to
be considered when reviewing any particular case.
The steps below relate to the enforcement of security in
commercial lending arrangements and will not be applicable to the
enforcement of security in connection with residential or housing
loans.
Step 1: Default
Generally speaking a lender is entitled to demand repayment of a
loan (together with all interest and costs) following the
occurrence of an event of default which has not been waived by the
lender or cured by the borrower. Some other facilities are
described as on demand facilities meaning that the lender can
demand repayment of the loan at any time. Notwithstanding the
entitlement of a lender to demand a loan facility without default
having occurred, it is not advisable for a lender to demand the
repayment of a loan
