Law stated as at 01 Dec 2011 • Channel Islands-Jersey |
1983 Law | New Law | |
Scope of collateral |
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Creation/ attachment/ perfection | Security interest agreement complying with the 1983 Law, as well as either:
No statutory concepts of attachment or perfection (only creation). | Security interest agreement complying with the New Law, as well as both:
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Third party security | Third party security (that is, security granted in support of the obligations of a third party) is not expressly contemplated under the 1983 Law. This issue is usually dealt with by including a limited recourse guarantee or covenant to pay in the security interest agreement. | The New Law expressly permits third party security. |
Rights to deal | The 1983 Law does not expressly provide for the grantor having rights to deal with collateral (for example, secured accounts) or substitute equivalent collateral or withdraw excess collateral. | The New Law expressly provides that security is not affected by the grantor either:
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Registration | No public registration of security. | Registration of security on an online register open to public searches. |
Enforcement | Power of sale is the only enforcement remedy (requiring 14 days' notice before enforcement of security where the event of default is capable of remedy). | Wider enforcement remedies, including:
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T +44 (0)1534 504 394
F +44 (0)1534 504 444
E [email protected]
W www.ogier.com