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ARTICLE · 02 JUNE 2026

Comparative Table: Close-out Netting And Set-off Provisions Comparison Between Jurisdictions

Carey Olsen
Carey Olsen
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Carey Olsen

Carey Olsen

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This comprehensive guide examines how five major offshore jurisdictions—Bermuda, British Virgin Islands, Cayman Islands, Guernsey, and Jersey—approach close-out netting and set-off provisions in insolvency scenarios. The analysis explores the enforceability of ISDA Master Agreements and the critical distinctions between statutory frameworks and contractual arrangements across these financial centers.

GlobalInsolvency/Bankruptcy/Re-Structuring
Peter Sherwood
Peter Sherwood
Richard Brown
Richard Brown
David Jones
David Jones
Jeremy Lightfoot
Jeremy Lightfoot
Kyle Masters
Kyle Masters
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Bermuda

British Virgin Islands

Cayman Islands

Guernsey

Jersey

Legal framework

Section 235 of the Companies Act 1981 and Section 37 of the Bankruptcy Act 1989.

Section 150 of the BVI's Insolvency Act 2003 (the "Insolvency Act") governs insolvency set-off, applicable to mutual dealings between a debtor and a creditor.

Part XVII of the Insolvency Act contains a statutory framework recognising the enforceability of netting arrangements and master netting agreements, including those arising under broadly defined collateral arrangements and other "financial contracts".

Section 140 of the Companies Act (as revised) (the "Companies Act").

The Companies (Guernsey) Law, 2008 (the "Companies Law"); The Law of Property (Miscellaneous Provisions) (Guernsey) Law 1979 (the "1979 Law") and customary common law principles.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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