Lex situs: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
(Created page with "Latin for “''the law of the place''”. Relevant when contemplating the magic incantations of taking security over assets in far-off places. In a nutshell,...")
(No difference)

Revision as of 08:26, 23 October 2018

Latin for “the law of the place”. Relevant when contemplating the magic incantations of taking security over assets in far-off places.

In a nutshell, international conventions of security law say that it is best to have security interests governed by the “lex situs” – the prevailing law where the assets are physically located. So if your assets are held in a tri-party collateral arrangement in Luxembourg, for example, even if your trading contract is an english law 2010 GMSLA, you ought to have a Luxembourg law pledge to go with your English law fixed or floating charge.