Enforcing Security In Scotland

Introduction

As a starting point, it is worth mentioning that the methods of taking security over property in Scotland and England are different. Scots law does not recognise the concept of an equitable charge and does not distinguish between a mortgage and a charge. There is no sub-categorisation into legal or equitable mortgages and fixed charges.

While in England, legal and equitable mortgages and charges can, in principle, be granted over all property, different types of security are used in Scotland to secure different types of property. For example, the only competent ways in which shares in a Scottish Company can be secured are by way of pledge or floating charge. Generally in Scotland different types of security are not created in a single document and there is no Scottish form of debenture or general security agreement.