Taking and registering security over assets relating to the project — real property

Land (or real property) is commonly offered as security for a loan. This is the case for project finance transactions where the project site represents a significant proportion of the borrower’s assets.

Generally, security in respect of land extends to fixtures that form part of the land, unless the contrary is expressly provided for.

This guidance note explains some key matters relating to taking security over land located in Australia in a project finance transaction, including matters relating to creating a legal mortgage and an equitable mortgage over land. Guidance is also provided on key provisions of a mortgage over land in a project finance transaction, including key covenants and common representations and warranties.

See Taking and registering security over assets relating to the project — real property.