Amending And Registering Existing Jersey Security Interest Agreements Under The New Legal Framework

After some considerable delay, it is now anticipated that Jersey's new security interests law, the Security Interests (Jersey) Law 201- (the "New Law"), will come into force some time during the second quarter of 2012. The New Law considerably refines and enhances Jersey's existing regime for taking security over intangible movables such as bank accounts, shares or contract rights.

No Need to Panic

First some reassurance: if you have the benefit of security created under Jersey's existing security interest law (i.e. under the Security Interests (Jersey) Law 1983 (the "Old Law")), there is no need to panic. Subject to one key proviso, your security will remain in full force and effect, and subject to the Old Law once the New Law comes into force. The key proviso is as follows: if you decide to amend your Old Law security interest, it will be deemed to have been reconstituted as a security interest under the New Law. The New Law defines what it means by "amend". A