The Moveable Transactions (Register of Assignations and Register of Statutory Pledges Rules) (Scotland) Regulations 2024
Introduction:
The Moveable Transactions (Register of Assignations and Register of Statutory Pledges Rules) (Scotland) Regulations 2024 (the “Regulations”) were introduced on December 16, 2024, in Scotland. These Regulations aim to regulate the registration of assignations and statutory pledges over movable property in Scotland.
Scope of the Regulations:
The Regulations apply to all assignations and statutory pledges that create or transfer security interests in movable property in Scotland. Movable property includes goods, equipment, inventory, and other assets that are not permanently attached to land.
Register of Assignations:
The Regulations establish a Register of Assignations (the “Register”) for the registration of assignations, which are assignments of a security right over movable property. When an assignation is registered, it becomes binding against third parties and protects the interests of the assignee (the person taking the security).
Registration Process:
To register an assignation, the following information must be provided:
- Details of the assignor and assignee
- Description of the movable property assigned
- Amount of the debt secured by the assignation
- Date and time of registration
The Register is maintained by the Keeper of the Registers of Scotland.
Register of Statutory Pledges:
The Regulations also establish a Register of Statutory Pledges (the “RSP”) for the registration of statutory pledges. A statutory pledge is a security interest created by operation of law over specific movable property, such as the unpaid seller’s right of retention or the landlord’s hypothec.
Registration of Statutory Pledges:
A statutory pledge is automatically registered on the RSP upon the occurrence of the event that gives rise to it, such as the seller delivering goods to the buyer or the tenant falling into arrears with rent. However, the person claiming the statutory pledge can choose to register it before or after the event occurs.
Priority of Registrations:
Registrations on the Register and the RSP are effective from the date and time of registration. The priority of competing registrations is determined by the order in which they are registered, with later registrations taking priority over earlier ones.
Consequences of Non-Registration:
If an assignation or statutory pledge is not registered, it will not be effective against third parties, such as subsequent purchasers or creditors. This means that the security interest created by the assignation or statutory pledge may be lost or diminished.
Conclusion:
The Moveable Transactions (Register of Assignations and Register of Statutory Pledges Rules) (Scotland) Regulations 2024 provide a clear framework for the registration of assignations and statutory pledges over movable property in Scotland. By creating a public record of these security interests, the Regulations protect the rights of both creditors and debtors, facilitate commercial transactions, and reduce legal uncertainty.
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