Revised Laws of Saint Lucia (2023)

9.   Requirements for security agreement

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    (1)   A security agreement must —

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      (a)     be in writing and signed by the grantor;

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      (b)     identify the secured creditor and the grantor;

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      (c)     except in the case of an agreement that provides for the transfer of receivables, describe the secured obligation; and

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      (d)     describe the encumbered property in accordance with section 10.

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    (2)   Notwithstanding subsection (1), a security agreement may —

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      (a)     be oral, if the secured creditor has possession of the encumbered property;

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      (b)     provide for —

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        (i)     the creation of a security interest in future property and in such a case, the security interest in that property is created in accordance with section 6 at the time when the grantor acquires a right in property or the power to encumber the property, and

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        (ii)     the appointment, rights, and duties of a receiver;

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      (c)     be made in accordance with the credit-sale agreement requirements under section 4 of the Consumer Credit Act.

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    (3)   Without prejudice to subsections (1) and (2) and sections 6, 73, 74, 91, Part VII and section 117, the parties may create a security interest in movable property.

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    (4)   A security agreement under subsection (3) does not affect the rights or obligations of a person that is not a party to the security agreement.