Revised Laws of Saint Lucia (2023)

13.   Security interest in trade receivables

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    (1)   A security interest in trade receivables may be created by the grantor and is effective against the debtor of trade receivables under Part V despite an agreement between the debtor of trade receivables and the initial grantor or a subsequent grantor that limits the right or power of the initial or subsequent grantor to create a security interest in the trade receivables.

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    (2)   Where an agreement under subsection (1) is breached by a grantor, this section does not affect an obligation or a liability of the grantor to the debtor of trade receivables for breach of that agreement, and the debtor of trade receivables may not —

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      (a)     avoid the contract giving rise to the trade receivables on the ground of the breach of that agreement; or

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      (b)     raise against the secured creditor a claim the debtor of receivables may have against the grantor as a result of the breach.

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    (3)   A person that is not a party to an agreement under subsection (1) is not liable for the breach of the agreement by the grantor on the ground that the person had knowledge of the agreement.