Deed of Acknowledgement Change of Trustee
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1 Deed of Acknowledgement Change of Trustee retiring trustee new trustee continuing trustee Date: / / Important In this deed: us, we and the bank means TSB Bank. the terms that are in bold in this deed are the parties to this and otherwise have the meanings as set out in the schedule to this deed. if the retiring trustee, the new trustee or the continuing trustee include more than one persons, then each person agrees to the obligations both separately and together. person means an individual, company, association of persons (whether corporate or not), trust or any other entity (whether or not having a separate legal personality). you means the retiring trustee, the new trustee and the continuing trustee and each of you separately and all of you together. effective date means the later of the date of this deed or the date that the property is transferred into the names of the continuing trustee and the new trustee. Background A. The retiring trustee and the continuing trustee are the current trustees of the trust. B. The trust is the owner of the property. The property is subject to the mortgage in favour of the bank. C. The mortgage secures the obligations under the existing loan documents which record the terms of loans and other facilities provided to the trust by the bank. D. The retiring trustee has retired as a trustee of the trust and the new trustee has been appointed. E. You have requested us to consent to the transfer of the property to the continuing trustee and the new trustee of the trust being the current trustees of the trust which we have agreed to do subject to you all signing this deed. JH V2
2 This deed records The bank consents 1. The bank consents to the transfer of the property into the names of the continuing trustee and the new trustee subject to the mortgage and agrees to release the retiring trustee from the retiring trustee s obligations under the mortgage and the existing loan documents effective from the effective date. 2. Notwithstanding clause 1, the bank retains the right to rely on the retiring trustee s obligations under the mortgage and the existing loan documents for two years from the effective date. If any payment that was received by us is set aside or is required to be repaid by the bank during that period, then we will be entitled to exercise our rights under the mortgage and/or the existing loan documents as if we had not released the retiring trustee from the mortgage or the existing loan documents under this deed. Obligations of the new trustee and the continuing trustee 3. The new trustee agrees to be bound by the mortgage and the existing loan documents as from the effective date as if the new trustee had signed the mortgage and the existing loan documents instead of, or as well as, the retiring trustee and the continuing trustee. 4. The continuing trustee will continue to be liable after the effective date for all obligations under the mortgage and the existing loan documents and the continuing trustee and the new trustee agree to the retiring trustee being released from the retiring trustee s obligations under the existing loan documents on the terms set out in this deed. 5. The new trustee and the continuing trustee agree that all limits on personal liability under the mortgage which would otherwise apply for the benefit of the new trustee under section 205 of the Property Law Act 2007, shall not apply so that the new trustee shall be personally liable to the bank under the mortgage and the existing loan documents. The clause in the bank s memorandum that limits the liability of independent trustees shall however apply to the independent trustee (if any). 6. The new trustee acknowledges that the new trustee has received a copy of the mortgage incorporating the bank s memorandum and the existing loan documents for the purposes of disclosure under the Credit Contracts and Consumer Finance Act 2003 prior to signing this deed. Other things that we rely on 7. You acknowledge that the nature of your obligations was explained to you and that you understand your obligations under this deed. 8. The new trustee and the continuing trustee certify to the bank that: the new trustee is able to enter into this deed and is able to accept and be bound by the mortgage and the existing loan documents under the terms of the trust document of the trust or under the Trustee Act 1956 and any trustees resolutions or other authorisations that may be required have been obtained or passed prior to the signing of this deed to ensure that this deed is legally binding. the new trustee and the continuing trustee have properly signed this deed in accordance with the terms of the trust document. the entry into this deed is for a proper purpose and for the benefit of the trust. EXECUTED AS A DEED as retiring trustee in the presence of: Signature of retiring trustee
3 as retiring trustee in the presence of: as new trustee in the presence of: Signature of new trustee as new trustee in the presence of:
4 Signature of continuing trustee Signature of continuing trustee
5 Schedule bank s memorandum no: existing loan documents: independent trustee: mortgage: property: no: address: certificate identifier: land registry: trust trust document: name of trust: The trust deed dated: DF /16
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