Common Mistakes In Jersey Security Documents – And How To Avoid Them

Jersey remains one of the leading offshore jurisdictions for cross-border lending transactions and central to many of these arrangements is a robust security package governed by Jersey law. Yet despite the sophistication of the transactions and the Security Interests (Jersey) Law 2012 (the 2012 Law) having been in force for well over a decade, Jersey law security can suffer from errors which, if left uncorrected, can undermine the enforceability of that security and leave creditors materially exposed.

This article identifies the most common pitfalls we encounter in practice and offers practical guidance on how to avoid them.

Jersey and English law: It isn't the same

Perhaps the most frequent source of error arises from the assumption that Jersey law mirrors English law in all material respects.