The Economic Development Department is asking members of Jersey’s business community for their views on a new draft Security Interests Law.
A security interest gives a creditor certain rights over an asset that has been offered as security, usually for the payment of a debt. Security interests are currently created under the provisions of the Security Interests (Jersey) Law 1983 and are mainly created in shares and other registered securities issued by Jersey companies, debts and debt instruments issued by debtors or issuers located in Jersey or monies in bank accounts opened with banks in Jersey.
Intangible property and investment securities are of huge importance as collateral in modern financing. However, the 1983 Law has remained relatively unchanged and could be improved in the light of current practices. The draft Law would replace the 1983 Law to provide Jersey with a simplified, legal regime for creating and enforcing security interests.
The Minister for Economic Development, Senator Alan Maclean, said: “I welcome this consultation on updating Jersey’s Security Interests Law. The draft Law, which follows the recommendations of one of the leading authorities in this field, Professor Sir Roy Goode QC, is designed to give Jersey one of the most up-to-date legal regimes in this field and thereby to enhance Jersey’s attractiveness to both local and foreign investors.”
The closing date for responses is Friday 31 July 2009.
Notes to Editors:
1. For further information, please contact James Mews, Director of Finance Industry Development on: 01534 440413 or Casey McGrath, Finance Industry Development Assistant on: 01534 440558