Enforcement of Jersey Security

• There are a number of pre-enforcement steps that should be taken prior to taking action in Jersey.
• Secured parties have specific duties under Guernsey and Jersey law to comply with when taking enforcement action.
• Certain practical issues relating to KYC and stock transfer forms may arise when enforcing share and account security.

The secured lending market is very familiar with structures involving Jersey entities, including companies, limited partnerships and unit trusts to name but a few. Jersey continues to be a popular and commercially attractive jurisdiction in which to establish asset-holding structures. One of the reasons for Jersey’s popularity as a jurisdiction for establishing such holding structures is that the Security Interests (Jersey) Law 2012 (“SIL”) provides lenders with a modern, efficient and creditor friendly regime for taking and enforcing security over the Jersey situate assets of those structures (namely the shares in Jersey companies, units in Jersey unit trusts, Jersey deposit accounts, Jersey securities accounts and Jersey contract rights). This note looks at the process of enforcing security interests created under SIL as well as some practical considerations for those planning or taking enforcement steps.

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