By Katrina Edge, Bruce MacNeil

Jersey entities have proved popular as vehicles for a wide variety of asset holding structures, such as those holding real property. The modern legal framework and tax neutral regime are attractive to professionals structuring transactions for their clients. As a consequence, lending institutions are frequently requested to put in place credit arrangements for Jersey entities. To protect its position in these circumstances, a lending institution needs to be aware of the material differences that exist between English law and Jersey law.

This briefing is intended to highlight the issues that may be relevant when lending to a Jersey entity, including how security is created under Jersey law, issues relating to corporate benefit and the primary insolvency regimes relevant to Jersey entities.