FAMILY ASSIST GUARANTEE AND CHARGE OVER SAVINGS ACCOUNT

Guarantee and Charge Over Savings Account
(Dated)

The Guarantor(s) 
(Full name(s) and address(es)) 		

The Borrower(s)
(Full name(s) and address(es))		

The Society	Progressive Building Society
having its Chief Office at 33/37 Wellington Place,
Belfast BT1 6HH	

DEFINITIONS
Debt	The amount the Borrower(s) has borrowed from the Society namely £ [  ] plus interest, costs, charges and expenses secured to the Society under the Mortgage.	
Family Assist Savings Account	The Family Assist Savings Account relating to the Borrower(s) and the Property held by the Society in the name(s) of the Guarantor(s) and all monies from time to time standing to the credit of the Family Assist Savings Account. 	
Guarantee and Charge Over Savings Account	This Charge.	
Mortgage	The agreement the Borrower(s) has made with the Society as set out in the Mortgage Deed and the Mortgage Conditions.	
Mortgage Conditions	The conditions setting out the rights and duties of the Borrower(s) and the Society that have to be followed once the Society has lent money to the Borrower(s).	
Mortgage Deed	The document signed by the Borrower(s) in favour of the Society giving the Society security over the Property.	
Monthly Payment	The amount the Borrower(s) has to pay to the Society every month to pay the money owed to the Society.	
Net Proceeds of Sale	The proceeds of sale of the Property less the costs incurred by the Society, the costs incurred by a Receiver, agency fees, legal fees and all other costs, charges and expenses incurred by the Society in the sale of the Property under the Mortgage.	
Property	The property known as [  ]	
Receiver	A person appointed by the Society under the Mortgage to act as receiver in respect of the Property.	
Savings Amount 	£[  ]	
Shortfall on Sale	The amount by which the Debt exceeds the Net Proceeds of Sale.	
We/us/our	The Society 	
You/yours	You and each of you if there is more than one Guarantor. Where there is more than one Guarantor the agreements and obligations under this Charge apply to all of you together or each of you on your own.	

BACKGROUND

a)	We have made a loan or will be making a loan available to the Borrower(s) on the security of the Mortgage.

b)	It is a condition of the loan that you guarantee the repayment of the Debt up to the Savings Amount and secure the repayment by granting a charge in our favour over the Family Assist Savings Account on the conditions contained in this Charge.

GUARANTEE

1.	In consideration of the Society making a loan or continuing to make a loan available to the Borrower(s) you unconditionally and irrevocably guarantee and agree as a continuing obligation to pay to the Society on demand the Debt PROVIDED ALWAYS that the total amount ultimately enforceable against you under this Charge shall not exceed the Savings Amount.

CHARGE OVER SAVINGS ACCOUNT

2.	As legal and beneficial owner and as a continuing security for the payment of the Debt to the Society, you assign absolutely to and charge by way of first fixed charge in favour of the Society all of your right, title and interest in and to the Family Assist Savings Account.

3.	The Savings Amount shall remain on deposit with us and not be repayable by us to you until the happening of any one of the events mentioned in the Schedule to this Charge (the Relevant Event) after which the Savings Amount shall upon written request received by us from you be repaid to you.

4.	At your request, we will arrange to transfer any interest payable (annually) on the Savings Amount into an account in your name(s) which you have nominated for this purpose.

5.	Where the Borrower(s) has failed to make three or more Monthly Payments and we have taken steps to enforce the Mortgage or if our power of sale under the Mortgage becomes exercisable prior to the happening of the Relevant Event:

i.	the amount due under this Charge shall become immediately due and payable by you; 

ii.	after the Property has been sold and if there is a Shortfall on Sale, we shall give you 7 days’ notice (demand) of the amount of the Shortfall on Sale and at any time after that we may apply and set off, subject to Clause 6, the Savings Amount or any part of the Savings Amount to the credit of the Debt in whichever order and in our absolute discretion as we think fit.

iii.	if the Shortfall on Sale is less than the Savings Amount, the balance of the Savings Amount will be released to you.

6.	In the circumstances noted in Clause 5, we may place and keep for as long as we consider prudent any part of or all of the monies held in the Family Assist Savings Account on one or more separate or suspense accounts to the credit of you or any other party as we think fit without any intermediate obligation to apply the monies towards the Debt.

GENERAL

7.	In order for us to administer the Mortgage or to exercise our powers under this Charge, you authorise us to disclose your name and address and the details of the Family Assist Savings Account to the Borrower(s) and any solicitor acting for the Borrower(s) or for us or any other party whom we consider it necessary for those purposes. 

8.	A certificate signed by any one of our authorised officers shall without question by you be accepted as final and conclusive except where we have made a manifest error.

9.	You agree to waive any rights you have to participate in the proceeds of sale of the Property or any other security held by us for the Debt or any part of it or in any other money that may be received by us in respect of the Debt unless and until all the Debt has been received by us in full.

10.	Your liability under this Charge shall not be discharged if we give time or other indulgence to the Borrower(s) or if we agree with the Borrower(s) (without your consent) to vary any terms relating to the Mortgage.  

11.	This Charge shall be held by us in addition to and shall not be affected by any other security held by us for the Debt and we may, as and if we think fit, release or make any arrangements regarding any other security held by us.

12.	Your liability under this Charge shall not be affected by any failure or irregularity in any document or security given by the Borrower(s).

13.	No failure by us to exercise any right or remedy under this Charge shall operate as a waiver of that right or remedy or prevent us from exercising that right or remedy at a later date.

14.	You shall not create or permit to exist any other security over the Family Assist Savings Account ranking ahead of or equal to or after this Charge and our powers under this Charge shall have priority to your interest in the Family Assist Savings Account or any person claiming through you.

15.	You irrevocably appoint us or our nominee or any Receiver to be your attorney and in your name and on your behalf and as your act and deed to sign, execute and deliver and do any act or thing which you may or ought to do under the terms of this Charge and generally in your name and on your behalf to exercise all or any of the powers, authorities and discretions conferred by this Charge or by law on us.

16.	We may assign or transfer all or any of our rights, benefits or obligations under the Mortgage and this Charge to a third party without obtaining your consent and you authorise us in these circumstances to disclose to the proposed assignee or transferee any information we hold in relation to you as may be reasonably required by that third party for that purpose. Any such third party shall be entitled to enforce this Charge in the same manner in our place.  

17.	Any notice or demand we give you will be in writing and sent to you by prepaid post to the address noted at the beginning of this Charge (or such other address that you notify to us at least 7 days previously) and the notice or demand will be deemed to have been delivered to you forty eight hours after we have posted it.

18.	References in this Charge to the Society include its successors and assigns and any references to you or the Borrower(s) include your and their respective personal representatives, successors and assigns.

19.	This Charge is governed by and shall be construed in accordance with the laws of Northern Ireland and you hereby irrevocably agree that the courts of Northern Ireland shall have jurisdiction to hear and determine any suit, action or proceeding and to settle any dispute which may arise out of or in connection with this Charge and for such purposes you irrevocably submit to the jurisdiction of those courts.  

SCHEDULE

The Relevant Event

1.	The expiry of 2 years from the date of the Mortgage unless any one of the following circumstances has occurred: -

i.	Where we have taken any steps to enforce the Mortgage or where our power of sale under the Mortgage becomes exercisable we will continue to hold the Savings Amount until it is determined whether there will be a Shortfall on Sale (and if there will be a Shortfall on Sale then the provisions of Clause 5 above shall apply), or
ii.	Where a sole Guarantor dies or where there is more than one Guarantor, the surviving Guarantor dies, the Savings Amount will be released on receipt by us of satisfactory evidence of death.

2.	If the Debt has been repaid in full.

	
THIS IS A GUARANTEE AND CHARGE OVER SAVINGS ACCOUNT. YOU ARE REQUIRED TO TAKE INDEPENDENT LEGAL ADVICE ABOUT ITS TERMS AND EFFECT. 

BY SIGNING THIS GUARANTEE AND CHARGE OVER SAVINGS ACCOUNT YOU ARE LIABLE TO PROGRESSIVE BUILDING SOCIETY FOR THE OBLIGATIONS OF THE BORROWER(S) UP TO A MAXIMUM AMOUNT OF (THE SAVINGS AMOUNT).

THE SAVINGS AMOUNT MAY BE USED BY THE SOCIETY TO PAY THE SHORTFALL ON SALE OF THE PROPERTY WHERE THE BORROWER(S) HAS FAILED TO MAKE 3 OR MORE MONTHLY PAYMENTS AND AFTER THE SOCIETY HAS ENFORCED ITS MORTGAGE.

	
Executed and Delivered
as a Deed by the Guarantor	Signature _________________________
in the presence of:

Signature of Witness: ____________________	Address: _________________________
Occupation:  Solicitor 

Executed and Delivered
as a Deed by the Guarantor	Signature _________________________
in the presence of:

Signature of Witness: ____________________	Address: _________________________
Occupation:  Solicitor 

CONFIRMATION
I/We confirm that prior to the execution of this Guarantee and Charge Over Savings Account, I/we have been independently advised on its nature, terms and effect by my/our solicitor and I/we have signed this Guarantee and Charge over Savings Account voluntarily.

I/We confirm that I/we have today received a copy/ies of the Guarantee and Charge Over Savings Account.
Dated 	_______________20

Guarantor Signature:_____________________
Guarantor Signature:_____________________