• Part 1: Part 1: Application, Commencement and Interpretation

    • Article 1 - Citation

      These Regulations may be referred to as the Security Regulations 2011.

    • Article 2 - Application

      These Regulations are made by the Minister pursuant to Article 9 of the QFC Law and shall apply in the QFC. To the fullest extent permitted by the QFC Law, the laws, rules and regulations of the State concerning the giving and taking of security therein shall not apply in the QFC.

    • Article 3 - Commencement

      These Regulations shall come into force on the date of their signature by the Minister.

    • Article 4 - Language

      In accordance with Article 9 of the QFC Law, these Regulations are written in the English language and the English text thereof shall be the official original text. Any translation thereof into another language shall not be authoritative and in the event of any discrepancy between the English text of these Regulations and any other version, the English text shall prevail.

    • Article 5 - Interpretation

      Words and expressions used in these Regulations and interpretative provisions applying to these Regulations are set out in Part 8.

    • Article 6 - Scope of Regulations

      Subject to Article 7 and Article 8, these Regulations apply to Security Interests created or provided for by a Security Agreement made by a Debtor who is:

      (A) a QFC Person; or
      (B) a Non-QFC Person.

    • Article 7 - Excluded Arrangements

      These Regulations do not apply to:

      (A) liens, charges or other interests arising under any other Regulations or by operation of QFC Law;
      (B) rights of set-off;
      (C) the assignment of a right to payment under a contract to a Person who is obliged to perform or procure the performance of all or part of the transferor's obligations;
      (D) the assignment of Accounts or Promissory Notes solely to facilitate collection on behalf of the Person making the assignment;
      (E) the assignment of a single Account or Promissory Note to an assignee in full or partial satisfaction of a pre-existing indebtedness;
      (F) the sale of Accounts or Promissory Notes; or
      (G) securities and commodities repurchase arrangements.

    • Article 8 - Territorial Application

      These Regulations apply to Security Interests over:

      (A) tangible Personal Property, including but not limited to Goods, Instruments, negotiable Documents of Title, Money and Chattel Paper, which is located in the QFC;
      (B) Certificated and Uncertificated Securities issued by QFC Persons;
      (C) Security Entitlements or Security Accounts maintained by Security Intermediaries which are QFC Persons;
      (D) Commodity Contracts or Commodity Accounts maintained by Commodity Intermediaries which are QFC Persons;
      (E) Electronic Chattel Paper of which the authoritative copy is stored in the QFC;
      (F) Bank Accounts maintained with Banks which are QFC Persons; and
      (G) Letter of credit rights where the issuer or Nominated Person is a QFC Person.