Sir Klaus Vasper:
No need to explain, I can see that you are in desperate need of the Sword of Binding. Unfortunately I cannot lend you the Sword of Binding without the permission of the Einhasad shrine. We must take every precaution to guarantee that the sword does not fall into the hands of the betrayers of Shilen. Legend says that this sword has the power to seal magical creatures, and also the power to free them.
Go and find Priest Vadin in the town of Oren. If he gives his permission for you to use the Sword of Binding, I shall gladly lend it to you.