This document should be filled where a Lender accepts security from another person other than the Borrower. Without this agreement, the Lender cannot enforce recovery of the security in the event of default.

Do not hold the property of another without a supporting agreement else you may be exposed to allegations of fraud, stealing, conversion, obtaining by false pretenses etc.The agreement should be stamped with Stamp Duty within 30 days (at the nearest Lands Registry).