Jersey Law - Taking Security Over Intangible Moveable Property

One of the most common parts of our jobs as offshore Banking & Finance legal specialists is advising on security packages as part of pre-deal structuring and fee quoting. Often we are asked what security should be taken in respect of Jersey entities (and their assets) in the borrower group, how that security is taken and what registration and perfection steps are required.

In keeping with its status as a major international finance centre, Jersey has a modern, flexible regime for taking security over intangible moveable property such as shares, units, bank accounts and contractual rights which is governed by the Security Interests (Jersey) Law 2012 (as amended) ("SIL").

SIL superseded the Security Interests (Jersey) Law 1983 (the "1983 Law") which had governed such matters prior to 2 January 2014. The 1983 Law continues to govern all existing security taken in accordance with it prior to that date unless and until any further collateral is added to an existing