Lex situs: Difference between revisions
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Latin for “''the law of the place''”. Relevant when contemplating the [[magic incantation|deep magic]] of taking security over assets in far-off places. | {{anat|gmsla}}{{tag|Latin}} for “''the law of the place''”. Relevant when contemplating the [[magic incantation|deep magic]] of taking {{tag|security}} over assets in far-off places. | ||
In a nutshell, international conventions of [[security]] law say that it is best to have [[security interest|security interests]] governed by the “[[lex situs]]” – the prevailing domestic law where the secured assets are physically located. | In a nutshell, international conventions of [[security]] law say that it is best to have [[security interest|security interests]] governed by the “[[lex situs]]” – the prevailing domestic law where the secured 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 {{gmsla}}, you ought to have a [[Luxembourg]] law [[pledge]] to go with your English law [[Fixed charge|fixed]] or [[floating charge]]. | 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 {{gmsla}}, you ought to have a [[Luxembourg]] law [[pledge]] to go with your English law [[Fixed charge|fixed]] or [[floating charge]]. | ||
Revision as of 08:28, 23 October 2018
Latin for “the law of the place”. Relevant when contemplating the deep magic 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 domestic law where the secured 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.