Banking & Finance
Security Interests in Jamaican Lending Transactions
Lenders in Jamaica have several instruments available for securing loans against a borrower's assets. The choice of security, and the order in which security interests rank, can be determinative in an enforcement scenario. This article surveys the main instruments.
Published
25 February 2026
Mortgages over registered land
The most common form of real property security in Jamaica is a mortgage registered against a Certificate of Title under the Registration of Titles Act. A registered mortgage has priority over all subsequently registered interests and over unregistered dealings with the land. The mortgagee's remedies on default include sale by the mortgagee (without a court order where the power of sale has arisen), appointment of a receiver, and foreclosure. Priority between competing registered mortgages is determined by the date of registration.
Debentures and fixed and floating charges
A company may grant a debenture creating fixed and floating charges over its assets. A fixed charge attaches to specific identified assets (typically land, plant, and equipment) and prevents the company from dealing with those assets without the chargeholder's consent. A floating charge hovers over a class of assets (typically stock in trade and receivables) and crystallises on the occurrence of specified events, most commonly the appointment of a receiver or the commencement of winding up proceedings. A debenture must be registered with the Companies Office of Jamaica within thirty days of execution or it will be void as against a liquidator and creditors.
Bills of sale
A bill of sale is used to take security over personal property — goods and chattels — held by an individual or sole trader (as distinct from a company). It must be registered under the Bills of Sale Act within thirty days. The Act prescribes a statutory form, and departure from the form can render the instrument void. Bills of sale are less commonly used in commercial lending, where the borrower is typically a company, but they remain relevant for agricultural and equipment financing.
Priority and tacking
Priority between competing security interests over the same asset is generally determined by the order of registration. A later chargeholder who advances money without notice of an earlier unregistered charge may take priority, but registered interests are fixed in the order of their registration. Tacking — the practice of securing later advances under an earlier registered mortgage — is permitted in Jamaica subject to conditions.
Enforcement
Enforcement of security in Jamaica requires careful attention to the contractual and statutory procedures applicable to each type of security. Procedural failures — including failure to give the required notice before exercising a power of sale — can expose the lender to liability in damages. Legal advice should be sought before any enforcement action is commenced.
This article is provided for general information only and does not constitute legal advice. The law may have changed since publication. You should not act or refrain from acting on the basis of anything published here without first obtaining specific legal advice from a qualified practitioner. For advice on your specific circumstances, please contact Clarke, Whittaker & Reid.
About the Author
Nadine P. Whittaker
Partner · Real Estate & Banking
Nadine Whittaker joined the firm in 2005 and became a partner in 2011. Her practice covers the full range of real estate and conveyancing work, from residential transactions to large-scale commercial development, and she has particular expertise in structured finance and secured lending documentation for Jamaican financial institutions.
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