Regulation Of Receivables Trustees In Jersey

Introduction

In the mid-1990s receivable trust structures became the preferred form for the issue of bonds backed by UK credit card receivables. They have also become widely used for the issuance of UK residential mortgage backed bonds.

Receivables trust structures typically have at their heart a Jersey company which acts as trustee of a trust established under English law for the purpose of holding receivables. The receivables are sold by the originator of the receivables to the trustee. The funds to acquire the receivables are provided to the trustee by a special purpose funding vehicle, usually incorporated in England. The trustee holds the receivables on trust for the originator and funding vehicle, as beneficiaries.