Background
Under the Security Interests (Jersey) Law 2012 (the
"Security Law"), one method of security enforcement is
for the secured party to appropriate the collateral.
Under this method of security enforcement, the secured party
becomes the owner of the collateral without the need for a court
order.
The value of the collateral is determined by the secured party.
If the value of the collateral is less than the secured
liabilities, the grantor remains liable for the shortfall (unless
otherwise agreed). If the value of the collateral is greater than
the secured liabilities, the secured party has to account to the
grantor for the surplus value.
The secured party owes a number of duties under the Security
Law. One of the duties is "to take all commercially
reasonable steps to determine the fair market value of the
collateral, as at the time of the appropriation."
