Enforcement Of Security Under The Security Interests (Jersey) Law 2012

One of the reasons for Jersey's popularity as a jurisdiction for establishing investment and asset holding structures is that the Security Interests (Jersey) Law 2012 (2012 Law) provides lenders with a modern, efficient and creditor friendly regime for taking and enforcing security over the Jersey situate assets of those structures (namely the shares in Jersey companies, units in Jersey unit trusts, Jersey deposit accounts, Jersey securities accounts and Jersey contract rights).

If a Jersey law governed security interest agreement over Jersey situs intangible moveable property (SIA) was entered into on or after 2 January 2014, the process for enforcing the SIA will fall under the 2012 Law. The 2012 Law details when a power of enforcement becomes exercisable, the process of enforcement, the duties of the secured party and the distribution of the proceeds of sale.