Electronic legal charges3

1

Subject to paragraphs (2) to (7), the grant of a legal charge of the whole of the registered estate in a single registered title is a disposition within section 91(2) of the Act.

2

Paragraph (1) does not apply to—

a

a disposition to which rule 38 of the principal rules applies,

b

the grant of a legal charge by a body corporate, whether the body corporate is the Borrower or a Joint Borrower, or

c

a charge which is authenticated by a person other than the Borrower.

3

Paragraph (1) only applies if at the time a person authenticates the charge as Borrower or Joint Borrower—

a

that person is entered in the register as proprietor or joint proprietor of the registered estate that is charged, or

b

there is entered in the day list notice of an application to register that person as proprietor or joint proprietor of the registered estate that is charged.

4

Paragraph (1) only applies if the Borrower authenticates the charge personally.

5

Paragraph (1) only applies if—

a

the charge is prepared using a procedure for doing so permitted by the land registry network, and

b

each electronic signature which the charge has, and the certification of each electronic signature, are in accordance with the provisions of a network access agreement.

6

A procedure within paragraph (5)(a) may, whether or not it is the only procedure within that sub-paragraph, require all or any of the provisions specified in Schedule 1 to be drafted automatically using an E-MD reference.

7

Schedule 1 (which makes provision about the contents of an electronic legal charge) has effect.

8

In this rule —

  • “Joint Borrower” means, where the Borrower comprises two or more persons, one of those persons, and

  • “joint proprietor” means, where the proprietor of a registered estate comprises two or more persons, one of those persons.