Appleby Finance Newsletter, Q1 2014: second ranking security under Guernsey law

By Jeremy Berchem

There is no doubt that second ranking security can be taken under the Security Interests (Guernsey) Law, 1993. The process can, however, be somewhat involved and there is often some confusion about the mechanics of doing so.

The law envisages the creation of multiple security interests in the same collateral and states that priority between security interests in the same collateral is determined by the order of creation of those interests (although nothing prevents a secured party from postponing its rights). Issues arise, however, from the mechanisms by which multiple security interests can be created over the same collateral under the law as security may only be taken under the law by way of control, possession or assignment.

As security by control (under section 1[5] of the law) relates only to account security where the account bank is also the secured party, it is unlikely that second ranking security will be created under this section…

If you are registered and logged in to the site, click on the link below to read the rest of the Appleby briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Appleby

View more briefings from Appleby

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

1st Floor
3 Copthall Avenue
London
EC2R 7BH
UK
http://www.applebyglobal.com

Total staff: 528
Partners: 64