SEYCHELLES Law and Practice Contributed by: Tamara Christen, Christen Chambers
no appeal. There is not a tangible secondary market for non-performing notes. 3.7 Subordinating Existing Debt to Newly Created Debt Secured debt is enforceable in order of date of regis - tration. Existing secured debt can be subordinated to new debt through contractual agreements between creditors, such as intercreditor arrangements. 3.8 Lenders’ Liability Under Environmental Laws A lender holding security without taking possession or control of the property is unlikely to face liability unless it directly causes pollution or knowingly permits damage. 3.9 Effects of a Borrower Becoming Insolvent Security interests created by a borrower in favour of a lender are not automatically void upon the borrower’s insolvency. During insolvency proceedings, enforce - ment of security may be stayed or restricted to facili - tate orderly asset distribution. 3.10 Taxes on Loans There is a 0.2% stamp duty on registration of a secu - rity. The primary statute governing land use, planning and zoning in Seychelles is the Physical Planning Act, 2021, which establishes the Seychelles Planning Authority (SPA) as the central body responsible for administering and enforcing planning and develop - ment control across the country. The SPA operates as a semi-autonomous authority under the Ministry responsible for lands and is empowered to prepare land use plans, determine applications for develop - ment permission, issue enforcement notices and exer - cise related regulatory powers 4. Planning and Zoning 4.1 Planning and Zoning Framework Under the Physical Planning Act, several key sets of subsidiary legislation regulate the detailed aspects of land use, development control and construction. The Physical Planning (Land Use and Development Plans)
Regulations 2023 set out the framework and proce - dures for preparing, publishing, consulting on, and approving land use and development plans, including provisions on zoning, plot coverage, building heights, no development zones, and public consultation and objection mechanisms. The Physical Planning (Devel - opment and Subdivision of Parcels) Regulations 2023 govern the subdivision and layout of land, including matters such as minimum plot sizes, access, ser - vice provision and related site planning standards, while the Physical Planning (Control of Development of Land) Regulations 2023 regulate the process for applying for development permission, the conditions that may be imposed, preservation orders, monitor - ing and inspections, and modification or revocation of permissions. Technical standards for building design and construc - tion are addressed in the Physical Planning (Build - ing) Regulations, 2024, which specify requirements for building materials, structural integrity, resistance to moisture and termites, fire safety and durability. Although adopted, these regulations have not yet been brought into force, and existing practice there - fore continues to rely on SPA guidelines and other applicable technical standards pending commence - ment. In addition to the SPA and planning legislation, foreign- led projects must also comply with separate sanction and investment approval processes. Foreign investors typically require (i) sanction approval in relation to the acquisition or development of immovable property, and (ii) project approval from the Seychelles Invest - ment Board (SIB) for business-related developments, both of which operate as pre-approval mechanisms co-ordinated with the relevant sectoral authorities. Once these preliminary approvals are in place, formal development permission must still be obtained from the SPA under the Physical Planning Act and its regu - lations, regardless of project scale or type. 4.2 Development Process, Challenges and Enforcement Development rights are principally obtained through the grant of development permission by the SPA under the Physical Planning Act and the Physical Planning (Control of Development of Land) Regulations 2023,
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