Enforcing Jersey Security Interests

In the current economic climate, banks are increasingly looking at what steps they need to take to enforce their security over Jersey situate collateral under security interest agreements ... and borrowers are looking at how to delay them whilst refinancing options are explored. What are the issues that are likely to arise?

Valid security?

The process begins with reconsidering the security interest agreement itself. Is it valid? A floating charge will not work over Jersey situate assets. All security interest agreements over intangible assets in Jersey must comply with certain formalities set out in the Security Interest (Jersey) Law 1983 (the "Security Interests Law"). Therefore security interest agreements must: