Deeds of Priority

What is a Deed of Priority?

A Deed of Priority is a statement that sets out our respective claims to the security you have provided, and this will need to be agreed by your other potential lender.

Together with other major banks, Barclays has signed up to a protocol for dealing with such matters, and the following documents provide information on this:

Protocol for the Agreement of Deeds of Priority (PDF 282KB)†

Protocol for the Agreement of Deeds of Priority fact sheet (PDF 190KB)†

As a responsible lender, we need to make sure that any changes to your business borrowing are sensible and affordable. Please contact your Relationship Director to arrange a meeting to discuss your plan with them.

What will we do?

As a responsible lender, we need to make sure that any changes to your business borrowing are sensible and affordable. Please contact your Relationship Director to arrange a meeting to discuss your plan with them.

Following the meeting, we will contact you within 7 working days to either:

• Confirm that we have granted your request, or
• Tell you that we cannot support your request, providing a clear explanation of our reason, or
• Tell you that we need more time or information before we can decide – with a clear explanation of why*. We will aim to give you a decision no more than 20 working days later.

*It could be for one or more of the following (but not exclusive) reasons:

• The security does not adequately cover your borrowing with us
• The proposed transaction would breach a condition you’ve agreed with significant implications for your existing lending.
  
  We will always explain our decision clearly. If you disagree with our decision then you can appeal against it.

If we agree to your Deed of Priority request, we will issue final documents (based on the standard or previously agreed documents) for all parties to sign. You will find a selection of our standard Deed of Priority documents below. These can be used by other lenders when entering in to a Deed of Priority with us.

Example documentation

Deed of Priority 1

Deed of Priority 1 is used when we and your other lender each hold a debenture and, possibly, another type of security. Our debenture (and other security if held) would have limited priority and the other lender would have limited priority. Deed of Priority 1 will ringfence priority for book debts, properties and plant and machinery and will then provide priority for any other assets.

Download Deed of Priority 1 (PDF 130KB)†

Deed of Priority 1B

Deed of Priority 1B is used when we and your other lender each hold a debenture and, possibly, another type of security. Our debenture (and other security if held) would have unlimited priority over the other lender’s security.

Download Deed of Priority 1B (PDF 91KB)†

Deed of Priority 1C

Deed of Priority 1C is used when we and two other lenders each hold a debenture and, possibly, another type of security. Our debenture (and other security if held) would have limited priority, the second lender’s security would have limited priority and the third lender’s security would have limited priority. Deed of Priority 1C will ringfence priority for book debts, properties and plant and machinery and will then provide priority for any other assets.

Download Deed of Priority 1C (PDF 138KB)†

Deed of Priority 2

Deed of Priority 2 is used when we hold a legal charge over land (and possibly also a debenture), while your other lender holds a legal charge over land. We’ll have unlimited priority over the other lender’s charge.

Download Deed of Priority 2 (PDF 163KB)†

Deed of Priority 2A

Deed of Priority 2A is used when we hold a legal charge over land (and possibly also a debenture) while your other lender holds a legal charge over land. We would have limited priority over the other lender’s charge and the other lender’s charge would have second limited priority.

Download Deed of Priority 2A (PDF 170KB)†

Deed of Priority 2B

Deed of Priority 2B is used when we hold a legal charge over land (and possibly also a debenture) while your other lender holds a legal charge over land. We would have limited first priority and the other lender would have unlimited second priority.

Download Deed of Priority 2B (PDF 165KB)†

Deed of Priority 2D

Deed of Priority 2D is used when we hold a legal charge over land (and possibly also a debenture) while your other lender holds a legal charge over land. We would have no priority over the other lender’s charge.

Download Deed of Priority 2D (PDF 155KB)†

Deed of Priority 2E

Deed of Priority 2E is used when we hold a legal charge over land (and possibly also a debenture) while your other lender holds a legal charge over land. We would have limited second priority behind the other lender’s charge and the other lender’s charge would have limited first priority.

Download Deed of Priority 2E (PDF 165KB)†

Deed of Priority 3A limited and 3AU unlimited

Deed of Priority 3A limited and 3AU unlimited is used when we hold a legal charge over property but no other charges or debenture, while your other lender has a debenture. This document can be adapted according to whether we are to have limited or unlimited priority in respect of the charged property.

Download Deed of Priority 3A limited and 3AU unlimited (PDF 150KB)†

Deed of Priority 3B limited and 3BU unlimited

Deed of Priority 3B limited and 3BU unlimited is used when we hold a Debenture but no other charges or debenture, while your other lender has a specific charge over land. This document can be adapted according to whether the other lender is to have limited or unlimited priority in respect of the charged property.

Download Deed of Priority 3B limited and 3BU unlimited (PDF 148KB)†

Important Information

The products referred to in this webpage are subject to separate terms and conditions.