Assume an international bank, with branch offices in New York and the Cayman Islands, makes a secured loan to a newly organized special purpose entity, organized as a Bermuda exempted company, secured by all of the borrower's assets.
Perfection and Priority of a Security Interest in Internationally Mobile Goods
Even if a loan to a borrower is made by the Cayman Islands branch of a lender, and thus neither lender nor borrower has any "presence" in New York (other than, not atypically, lender's counsel), the parties' choice of New York law should be effective, as New York permits parties to commercial agreements involving not less than $250,000 to "agree that the law of this state shall govern their rights and duties in whole or in part, whether or not such contract, agreement or undertaking bears a reasonable relation to this state."
By
James F. FotenosThis premium content is locked for LawJournalNewsletters subscribers only
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