Security Enforcement: Procedures And Pitfalls

Introduction

Political, commercial and economic factors may influence the propensity of lenders to consider the enforcement of security including, for example, fluctuating exchange rates, the rise and fall of energy and commodity prices, and uncertain commercial property market valuations, impacting on loan-to-value ratios. As a result, lenders may seek to understand their enforcement options; security agents and security trustees may wish to minimise their exposure on executing enforcement action; and potential purchasers of debt and collateral may seek to acquire assets through enforcement including "loan to own" strategies.

Set out below is an outline of the procedure and issues that may be faced when enforcing Jersey security, with a principal focus on the Security Interests (Jersey) Law 2012 (2012 Law).