Introduction
Jersey entities have proved popular as vehicles for a wide
variety of asset holding structures, such as those holding real
property. The modern legal framework and tax neutral regime are
attractive to professionals structuring transactions for their
clients. As a consequence, lending institutions are frequently
requested to put in place credit arrangements for Jersey entities.
To protect its position in these circumstances, a lending
institution needs to be aware of the material differences that
exist between English law and Jersey law.
This briefing is intended to highlight the issues that may be
relevant when lending to a Jersey entity, including how security is
created under Jersey law, issues relating to corporate benefit and
the primary insolvency regimes relevant to Jersey entities.
