Introduction
Guernsey entities continue to be popular in asset-holding
structures and, accordingly, lenders are regularly asked to put in
place financing arrangements involving Guernsey entities. This
briefing is intended to provide an overview of the mechanism under
Guernsey law for the creation and enforcement of security over
certain Guernsey situated assets, such as the shares in a Guernsey
company, certain contract rights and monies in a Guernsey situs
bank account.
Where security is being taken over Guernsey situated assets, it
is recommended that this is created using a security agreement
governed by Guernsey law. For intangible moveable property
(such as the shares of a Guernsey company, rights in a contract or
monies in a Guernsey bank account), this means complying with the
provisions of the Security Interests (Guernsey) Law, 1993 (the
Security Law).
