An Enhanced Security Regime For Jersey

INTRODUCTION

The Security Interests (Jersey) Law 2012 (the "New Law") is due to come into force on 2 January 2014. The New Law represents a significant reform of the ways in which security may be granted over intangible movable property in Jersey. It is anticipated that the enhanced regime will provide greater certainty and flexibility for both lenders and borrowers and will bring Jersey's security offering more into line with internationally recognised standards and practices.

THE CURRENT REGIME

At present, security over intangible movable property situate in Jersey is governed by the Security Interests (Jersey) Law 1983 (the "1983 Law"). The 1983 Law allowed the creation of security over a range of collateral by way of possession, control or assignment and has operated successfully for many years. However, with the advent of more sophisticated security requirements it has become clear that the 1983 Law is too restrictive.