Variation of Standard Security - Example Deeds

General

A variation of standard security is registrable by virtue of section 16(1) of the Conveyancing and Feudal Reform (Scotland) Act 1970. A statutory style is provided at Form E of Schedule 4 of the 1970 Act, for those which are endorsed on the original standard security.

The purpose of a variation is to alter the provisions of a standard security, but it cannot be used to discharge, assign or restrict a standard security or to add land to a standard security. The most common form of variation which a registration officer is likely to encounter is a variation relating to one of the borrowers becoming solely liable under the payment arrangements, for example when proprietors owning in common separate and the property is conveyed to one of them.

A variation is given effect to in the securities section by adding a note after the relevant entry in the securities section. The entry in the securities section for the standard security will continue to narrate the original party/ies to the security. Any party or parties not named in the proprietorship section will have to be designed.

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Securities Section Information

Standard Security - Example Deeds

Statutory style - variation endorsed on security

I, A.B. (designation), agree that the foregoing standard security granted by me (or by C,D.) in favour of E.F. registered in the Land Register of Scotland on.....over title number..... (or recorded in the Register for .................. on ..................)(if there have been previous variations insert “as varied”) shall with effect from .................. be varied so that (here insert particulars of the variation agreed); And I, E.F. (designation) (or if the creditor is not the person in whose favour the standard security was granted say G.H. (designation) the creditor now in right of the said standard security) consent to the variation hereby effected

Note: The style above applies to variations which are endorsed on the original standard securities and not to all deeds of variation. The example variation to the right is an example of how a stand alone deed of variation might be drafted.

Example variation

(This variation alters the loan conditions; possibly the borrower has renegotiated the borrowing terms)

1. Definitions and Interpretation

Words and phrases defined in the Loan Terms and Security Terms shall have the same meanings in this Deed of Variation and:

"Bank" means The Royal Bank of Scotland pic, incorporated under the Companies Acts (Company number SC 90312), and its successors in title and assignees, and where the context so admits, its appointed agent or the appointed agent of any persons so deriving title or any trustee for such agent or other persons.

"Customer" means Kriti Malhotra of 1416 Dumbarton Road, Glasgow, G14 9DR (referred to as "the Obligant" in the Standard Security) Where the Customer is more than one person the singular includes the plural and all obligations of the Customer are undertaken jointly and severally.

"Existing Loan Conditions" means the conditions set out at clauses 1 to 7 inclusive of the Standard Security.

"Existing Mortgage Conditions" means the conditions set out at clauses (FIRST) to (FIFTH) inclusive of the Standard Security.

"Loan Terms" means the Bank's Loan Terms 2011.

"Offer of Loan" means the Bank's offer of loan to the Customer dated 21/10/2015. "Security Terms" means the Bank's Security Terms 2011 (Scotland).

"Standard Security" means the Standard Security over the Property granted by the Customer in favour of the Bank registered in the Land Register of Scotland on 28/11/2006.

2. Operative Clauses

The Customer agrees to the terms set out below, and the Standard Security shall, with effect from the date of execution of this Deed of Variation, be varied accordingly:-

2.1 The Existing Loan Conditions and the Existing Mortgage Conditions shall cease to apply.

2.2 The Customer acknowledges receipt of the Offer of Loan, the Loan Terms and the Security Terms.

2.3 Term 1.3 of the Loan Terms is varied to the effect that the Customer shall be legally bound by the terms of the Offer of Loan as soon as the Offer of Loan and this Deed of Variation have been signed.

2.4 The Customer's undertaking in the Standard Security shall be varied so that the Customer undertakes (i) to pay to the Bank all sums due and that may become due by the Customer to the Bank in respect of all loans (including any additional loans or re-advances) made or which may in future be made by the Bank to the Customer, on demand with interest at the agreed rate(s), and (ii) to fulfil all the other obligations set out and described as the Customer's Obligations in the Security Terms.

2.5 The Standard Conditions referred to in the Standard Security (and any lawful variation of the Standard Conditions operative for the time being) shall continue to apply, as varied by the Security Terms.

2.6 The Customer declares that a certificate by a duly authorised signatory of the Bank as to the amount due to the Bank at any time by the Customer shall be conclusive, except in the case of clear error or in relation to a question of law.

2.7 The Standard Security shall remain in full force and effect except as varied by this Deed of Variation.

2.8 The Customer consents to the variation of the Standard Security hereby effected:

In Witness Whereof

Example securities section entry

ENTRY NO

SPECIFICATION

DATE OF REGISTRATION

[ ]

Standard Security for £130000 by said KRITI MALHOTRA to EXCELLENT MORTGAGES LIMITED, a company incorporated under the Companies Acts, Registered Office 125 Wimbourne Street, Bradford BD1 5AT (Company Registered Number 224567).

Note: The above standard security has been varied by Deed of Variation registered 26 Oct. 2015

28 NOV 2006

Where the variation alters the borrowers (which is a common type of variation), the Note reads:

"The personal obligations in the above Standard Security have been undertaken by said A in terms of Deed of Variation registered …"

Another option, when the increase in lending is apparent from the terms of the variation:

"The amount secured by the above Standard Security was increased by £5000 to a total sum of £45000 conform to Variation registered (date)".