Enforcing Security In Jersey – Case Law Update

Lenders are increasingly seeking advice on the practicalities of enforcing their Jersey security packages either at the outset of transactions, at pre-enforcement stage or with a view to enforcement. Unlike in England and Wales, Jersey does not have a concept of an administrator or receiver to be appointed to assist with enforcement and so any enforcement steps are taken directly by the secured party.

Thankfully, Jersey has a creditor friendly security law in the Security Interests (Jersey) Law 2012 ("SIL"), but there remain certain duties which must be complied with when appropriating or selling any collateral pursuant to enforcement action:

• to take all commercially reasonable steps to determine (in the case of appropriation) or obtain (in the case of sale) the fair market value of the secured collateral, at the time of the appropriation or sale;