Lex situs

A word about credit risk mitigation Go Premium Legal security: Mortgage • Pledge • Lien • Bailment Equitable security: Charge • fixed • floating | ABWOS | Equitable lien Credit risk mitigation: Title transfer | Guarantee | Letter of credit | Netting Friends and relations: Rehypothecation | Equivalent Documents: 1994 NY CSA | 1995 CSA | 1995 ISDA CSD (English law) Regulation: LPA 1925 | Financial Collateral Regulations | LPMPA 1994 Index: Click ᐅ to expand: Taking security Security Collateral 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

• Luxembourg law pledge
• Pledge