PRACTICE NOTES
English fixed charge receivers and Jersey security: recognition in Jersey, cross-border assistance and enforcement routes (Security Interests Law 2012, hypothecs, creditors’ winding up, désastre, dégrèvement)
This Practice Note examines the role of fixed charge receivers from a Jersey standpoint. As there is no fixed charge receivership process in Jersey, it focuses on how Jersey law interacts with English fixed charge receiverships in the circumstances below:
security granted by Jersey companies under English law over property located in England; and
security constituted under Jersey law over property located in Jersey
Security created by Jersey companies under English law over property situated in England
In broad terms, the Jersey courts will recognise a charge validly granted by a Jersey company over collateral outside Jersey where a non-Jersey governing law has been properly chosen, which is usually the law of the place where the collateral is located. However, certain aspects of a non-Jersey law charge created by a Jersey company remain governed by Jersey law, applying private international law principles derived from English common law. These matters include the company’s existence, its capacity and corporate authority to enter into the transaction, and whether the directors have exercised their powers properly. Such points are typically addressed in a legal opinion delivered to the chargee...
Restructuring & Insolvency