ANGUILLA Law and Practice Contributed by: Nina Rodriguez, Webster LP
• any other security required by the particular lender. 3.3 Restrictions on Granting Security Over Real Estate to Foreign Lenders An Aliens Land Holding Licence is required by a foreign lender as this affects an interest in land. There are no restrictions on repayments being made to a foreign lender; the repayment terms are a matter of contract. 3.4 Taxes or Fees Relating to the Granting and Enforcement of Security Stamp duty on the charge to be registered against the property is 1% of the charge (loan) amount. Stamp duty on the loan document is USD20. Registration fees on each document are USD37.20. There are no documentary taxes in Anguilla. Notary public fees will vary. 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. 3.8 Lenders’ Liability Under Environmental Laws 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.
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