The Security Interests (Jersey) Law 2012

The creation of security over intangible movables under Jersey law is now governed by the Security Interests (Jersey) Law 2012 (SIJL), which came into force on 2 January. This replaces the Security Interests (Jersey) Law 1983.

The SIJL provides for creation of security by control; possession; and description and registration.

Registration will be an integral step for perfection where security is taken by the collateral being described in the security agreement (rather than by possession or control). Searching the register will become relevant for new lenders. There is an important carve-out from the registration regime, where the grantor is the trustee of a private trust…

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