1. What forms of security can be granted over immovable and
movable property? What formalities are required and what is the
impact if such formalities are not complied with?
In the British Virgin Islands ("BVI") the following
forms of security can be granted over immovable property:
a. Mortgage (legal or equitable)
Both legal and equitable mortgages are recognised in the BVI. A
legal mortgage requires the transfer of title from the mortgagor to
the mortgagee. The most common asset held by BVI incorporated
companies is shares. A legal mortgage over shares will necessitate
a transfer of ownership of the share from the shareholder
(mortgagor) to the mortgagee, which will in turn require a change
to the Register of Members of the company. This will enable the
mortgagee, for instance, to receive a dividend. Due to the
impracticality of this, legal mortgages are not often utilised
forms of security over shares. An equitable mortgage, on the other
hand, enables the
