Under the operational provisions of the Trusts (Jersey) Amendment Law, Article 43A confirms that commercial lenders holding valid security over Jersey trust assets take statutory priority over former or current trustees' equitable indemnity liens arising by operation of law. Concurrently, Article 43(3A) restricts beneficiary-directed terminations under Saunders v Vautier principles wherever powers to add potential future beneficiaries remain active under the trust instrument.
- Practice Impact: Strengthens the position of institutional lenders providing credit facilities to Jersey trusts while restricting unilateral beneficiary wind-up attempts.
- Source: Review Bedell Cristin's Jersey Trusts Law Amendments Guide.
Jersey: Statutory Priority for Secured Lenders Over Trustee Equitable Liens