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 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.
News from Appleby
News from The Lawyer
Briefings from Appleby
Bermuda’s legal framework facilitates the creation of flexible and economically viable co-investment vehicles within a stable and business-friendly jurisdiction.
Feltham v Bouskell provides a cautionary tale for lawyers regarding the need to act quickly upon the receipt of instructions from elderly or ill clients.
Analysis from The Lawyer
The past quarter has been busy for the offshore sector as firms have looked to capitalise on globalisation, while workflow has remained high
Business is booming in the Isle of Man, a small jurisdiction that thinks big