Lex situs: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
No edit summary
No edit summary
Line 1: Line 1:
{{anat|security}}{{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.  
{{anat|security|}}{{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.  
Line 10: Line 10:




{{c|Foreign Security}}
{{c|Latin}}

Revision as of 13:09, 5 January 2021

A word about credit risk mitigation


Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you.
Sign up for our newsletter.

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.

See also