Offshore Lending and Financing

Description

Written for the international banking and financial services community, their advisors and offshore companies, this is the first book comprehensively to address the principles and practice of bank lending to offshore tax haven entities. Highly practical in its analysis of lending considerations via this secretive sector, it also contains a comparative study of law and practice in key offshore jurisdictions.

Front Cover 2
Offshore Lending and Financing: A Practical and Legal Handbook for Lenders, Borrowers, Investors and their Professional Advisers 3
Copyright Page 4
Dedication 5
Table of Contents 7
Preface 13
Table of cases 15
Table of statutes 17
Acknowledgements 25
Part I 27
- Chapter 1. Offshore centres: an introduction 29
  - Introduction 29
  - 1.1 Definition 29
  - 1.2 Should a lender be concerned by a borrower's choice of offshore centre? 30
  - 1.3 The borrower's criteria for choice 30

Front Cover 2
Offshore Lending and Financing: A Practical and Legal Handbook for Lenders, Borrowers, Investors and their Professional Advisers 3
Copyright Page 4
Dedication 5
Table of Contents 7
Preface 13
Table of cases 15
Table of statutes 17
Acknowledgements 25
Part I 27
- Chapter 1. Offshore centres: an introduction 29
  - Introduction 29
  - 1.1 Definition 29
  - 1.2 Should a lender be concerned by a borrower's choice of offshore centre? 30
  - 1.3 The borrower's criteria for choice 30
  - 1.5 The system of law 33
  - 1.4 The legal personality of the borrower 33
  - 1.6 Constitutional affiliation 35
  - 1.7 The lender's overview 38
- Chapter 2. Offshore centres: foreign law concepts and terms 39
  - 2.1 Applicable law and jurisdiction 39
  - Introduction 39
  - 2.2 Limitations on the lender's ability to select an applicable law 40
  - 2.3 Factors influencing selection of applicable law 41
  - 2.4 Jurisdiction 42
  - 2.5 Submission to jurisdiction 44
  - 2.6 Applicable law and jurisdiction, checklist and summary 44
  - 2.7 Domicile 45
  - 2.9 Residence 47
  - 2.8 Nationality 47
  - 2.10 Fiscal law 48
- Chapter 3. Due diligence: know your customer 53
  - 3.1 The need for due diligence 53
  - 3.2 Criminal liability 54
  - 3.3 The Basle Statement of Principles 54
  - 3.4 United Kingdom domestic legislation 55
  - 3.6 Mutual and bilateral treaties 58
  - 3.5 Money laundering and the European Union 58
- Chapter 4. The legal personality of the borrower 60
  - 4.1 The significance of legal personality 60
  - 4.2 Companies 61
  - 4.3 Partnerships 65
  - 4.4 Trusts 67
- Chapter 5. Considerations when lending to individuals 74
  - Introduction 74
  - 5.1 Capacity of natural persons 75
  - 5.2 Restrictions on dealing 77
  - 5.3 Understanding the borrower's purpose 79
  - 5.4 The liability of the borrower to tax 80
  - 5.5 United Kingdom resident non-domiciliaries 83
  - 5.6 Migration of individuals 84
  - 5.7 Facilitating enforcement or realisation of security 85
  - 5.8 Reciprocal enforcement in the foreign territory 89
  - 5.9 Court or other costs 90
  - 5.10 Enforcement of security rights 90
  - 5.11 The issues raised by cross-border insolvency 90
- Chapter 6. Considerations when lending to companies 94
  - Introduction 94
  - 6.1 Existence, capacity, due authorisation and execution 95
  - 6.2 Restrictions on dealing 99
  - 6.3 Understanding the borrower's purpose 100
  - 6.4 The liability of the foreign company borrower to tax 101
  - 6.5 Facilitating enforcement or realisation of security 106
  - 6.7 The issues raised by cross-border insolvency 108
  - 6.6 The opportunity for reciprocal enforcement, court or other costs and enforcement of security rights 108
- Chapter 7. Considerations whenlending to trustees 113
  - Introduction 113
  - 7.1 The validity of the trust 114
  - 7.2 Determining the proper or applicable law of the trust and migration of trusts 115
  - 7.3 Determining due constitution of the trust 117
  - 7.4 The trustee 117
  - 7.5 Trust powers 118
  - 7.6 Vesting of the trust property in the trustee 119
  - 7.7 Restrictions on trustee's liability 119
  - 7.9 Due authorisation 120
  - 7.8 The place of administration 120
  - 7.11 Bankruptcy and insolvency 121
  - 7.10 Enforcement against trustees 121
- Chapter 8. Double taxation 122
  - 8.1 Double taxation treaties: the OECD Model 122
  - Introduction 122
  - 8.4 General provisions 125
  - 8.2 Exemption and credit relief 125
  - 8.3 Anti-avoidance provisions 125
  - 8.5 Double taxation, implications for lenders 126
- Chapter 9. Considerations when taking security 127
  - Introduction 127
  - 9.1 What is the nature or classification of the property provided as security? 128
  - 9.2 What is the governing or applicable law for the creation of the security? 130
  - 9.3 Issues relating to title to property having a foreign law connection 133
  - 9.4 General terms and conditions of security documentation with a foreign law connection 135
  - 9.5 Perfection: requirements for creation in particular form, execution, attestation and registrations and filings 140
  - 9.6 Floating or universal business charges and non-possessory security 140
  - 9.7 Enforcement 141
- Chapter 10. Foreign law legal opinions 143
  - Introduction 143
  - 10.1 When should an opinion be sought? 144
  - 10.2 Who should give the legal opinion? 144
  - 10.3 What is the function of a foreign law opinion? 145
  - 10.4 What is the liability of the foreign lawyers for their opinion? 147
  - 10.6 The contents of the legal opinion 149
  - 10.5 Providing for the scope of reliance in a foreign law opinion 149
  - Appendix: Specimen foreign law legal opinion 159
- Part II 165
  - Chapter 11. Jersey 167
    - 11.2 Constitution 167
    - Introduction 167
    - 11.1 Currency and exchange control 167
    - 11.3 Legal system 168
    - 11.4 Constitutional relationship with the European Union 169
    - 11.5 Banking and professional confidentiality 169
    - 11.6 Regulation in the financial sector 170
    - 11.7 Anti-money laundering legislation and best practice 171
    - 11.8 Lending with a Jersey foreign law connection 173
    - 11.9 Enforcement 193
    - 11.10 Double taxation treaties 195
    - 11.11 Miscellaneous issues in relation to a Jersey foreign law opinion 195
    - 11.12 Recent or anticipated developments 196
  - Chapter 12. Guernsey 197
    - 12.1 Currency and exchange control 197
    - 12.2 Constitution 197
    - Introduction 197
    - 12.4 Constitutional relationship with the European Union 198
    - 12.3 Legal system 198
    - 12.5 Banking and professional confidentiality 199
    - 12.6 Regulation in the financial sector 200
    - 12.7 Anti-money laundering legislation and best practice 200
    - 12.8 Lending with a Guernsey foreign law connection 203
    - 12.9 Enforcement 218
    - 12.10 Recent and anticipated developments 220
  - Chapter 13. Isle of Man 221
    - 13.2 Constitution 221
    - Introduction 221
    - 13.1 Currency and exchange control 221
    - 13.3 Legal system 222
    - 13.4 Constitutional relationship with the European Union 222
    - 13.5 Banking and professional confidentiality 223
    - 13.6 Regulation in the financial sector 223
    - 13.7 Anti-money laundering legislation and best practice 224
    - 13.8 Lending with an Isle of Man foreign law connection 226
    - 13.9 Enforcement 239
    - 13.10 Recent and anticipated developments 241
  - Chapter 14. Gibraltar 242
    - 14.1 Currency and exchange control 242
    - 14.2 Constitution 242
    - Introduction 242
    - 14.4 Constitutional relationship with the European Union 243
    - 14.3 Legal system 243
    - 14.5 Banking and professional confidentiality 244
    - 14.6 Regulation in the financial sector 245
    - 14.7 Anti-money laundering legislation and best practice 246
    - 14.8 Lending with a Gibraltar foreign law connection 247
    - 14.9 Enforcement 258
    - 14.10 Recent and anticipated developments 259
  - Chapter 15. The British Virgin Islands 261
    - 15.2 Constitution 261
    - Introduction 261
    - 15.1 Currency and exchange control 261
    - 15.3 Legal system 262
    - 15.4 Banking and professional confidentiality 262
    - 15.5 Regulation in the financial sector 263
    - 15.6 Anti-money laundering legislation and best practice 263
    - 15.7 Lending with a British Virgin Islands foreign law connection 264
    - 15.8 Enforcement 274
    - 15.9 Recent and anticipated developments 275
  - Chapter 16. The Cayman Islands 277
    - 16.2 Constitution 277
    - Introduction 277
    - 16.1 Currency and exchange control 277
    - 16.3 Legal system 278
    - 16.4 Banking and professional confidentiality 278
    - 16.5 Regulation in the financial sector 280
    - 16.6 Anti-money laundering legislation and best practice 280
    - 16.7 Lending with a Cayman Islands foreign law connection 281
    - 16.8 Enforcement 295
  - Chapter 17. Bermuda 297
    - Introduction 297
    - 17.1 Currency and exchange control 297
    - 17.2 Constitution 297
    - 17.3 Legal system 298
    - 17.4 Banking and professional confidentiality 298
    - 17.5 Regulation in the financial sector 299
    - 17.6 Anti-money laundering legislation and best practice 300
    - 17.7 Lending with a Bermuda foreign law connection 300
    - 17.8 Enforcement 314
  - Index 316

A Practical and Legal Handbook for Lenders, Borrowers, investors and their Professional Advisers

Description

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