The New Security Interests (Jersey) Law

The Security Interests (Jersey) Law 1983, governing the creation of security over intangible movables, is due to replaced in 2012 and will offer secured parties new flexible methods of creation of security to enhance their position.

The existing 1983 Law allows a security interest to be created by possession of the certificates of title (where relevant) and/or assignment of title with giving of notice. The new law will allow security to be created as follows:

1. in the case of a bank account, (i) the account being transferred into the name of the secured party, (ii) the account bank agreeing to act on the secured party's instructions, (iii) title to the account being assigned to the secured party or (iv) the secured party being the account bank;