ANGUILLA Law and Practice Contributed by: Nina Rodriguez, Webster Legal
3.8 Lenders’ Liability Under Environmental Laws
The enforcement of security is dependent on the requirements and steps taken to recover any outstanding amount. This may involve court costs and fees, legal fees and costs resulting in the transfer by the chargee (lender) and the attendant stamp duties and registration fees. 3.5 Legal Requirements Before an Entity Can Give Valid Security The Articles of Incorporation/by-laws and other underlying documents, if any, of the entity would dictate the legal requirements with respect to the provision of valid security. 3.6 Formalities When a Borrower Is in Default So long as the lender holds a first legal charge over the security or at the onset, the lender ensures that the charge ranks pari passu with any existing charge, then the lender, along with the prior charge (lender) will rank in priority to the interests of other creditors. The Registered Land Act will dictate the steps required to be taken in a foreclosure. After three months of default the lender may exercise its powers of sale and take steps to sell the land at public auction. A defaulting borrower/proprietor, in good faith, may seek to vary the repayment terms of an outstanding loan. 3.7 Subordinating Existing Debt to Newly Created Debt It is possible for existing secured debt to become subordinated to newly created debt in any circumstances, whether by agreement or otherwise, with the consent of the first chargee (lender). The balance due on the existing loan and the value of the security will dictate whether or not a lender will take the security.
A lender holding or enforcing security over real estate cannot be liable under environmental laws if it did not cause any pollution of the real estate, as the interest is not proprietary in nature. 3.9 Effects of a Borrower Becoming Insolvent There is no law that makes security interests void if a borrower becomes insolvent. The lender can pursue its rights under the bankruptcy laws. 3.10 Taxes on Loans The issue of interest is one that is subject to negotiation among parties. 4. Planning and Zoning 4.1 Legislative and Governmental Controls Applicable to Strategic Planning and Zoning The applicable legislation is the Land Develop - ment (Control) Act and related protocols – see 2.8 Permitted Uses of Real Estate Under Zon- ing or Planning Law . 4.2 Legislative and Governmental Controls Applicable to Design, Appearance and Method of Construction The Proposed Anguilla National Land Use Plan sets out the guidelines relied upon by the Plan - ning Committee while the Anguilla Building Code is a guideline that applies to the design and con - struction of new buildings (alteration, demoli - tion, relocation, reconstruction, etc), and pro - vides recommendations with respect to waste disposal facilities and the minimum provision of water supply, etc.
44
CHAMBERS.COM
Powered by FlippingBook