Powers of Attorney
In this briefing we examine the role that a power of attorney
plays in supporting the typical security package held by a secured
party. There are notable differences between the Cayman
Islands and Luxembourg which should be borne in mind by a secured
party when structuring a transaction.
Cayman Islands
In a typical subscription finance transaction, the core assets
over which security is taken from a Cayman fund comprise
contractual rights held by the Cayman fund and its general partner
under the limited partnership agreement and each subscription
agreement. This vests an interest in such contractual rights
in the secured party, which are exercisable by the secured party
should an enforcement scenario arise.
