Bills Of Sale

On 9 September 2015 the Law Commission published a consultation paper proposing that the Bills of Sale Acts (i.e. the Bills of Sale Act 1878 and the Bills of Sale Amendment Act 1882) be repealed and replaced with a new "Goods Mortgages Act" to govern how individuals can use already owned goods as security for loans whilst at the same time retaining possession of the goods.  

The main impact of the new legislation would be on logbook loans (where a motor vehicle is being used as security for borrowing) which constitute the majority of the bills of sale currently registered.  However, because bills of sale are also used to create security over other personal chattels (such as valuable works of art and antiques left in the possession of an individual borrower), the effect of the new legislation would be much wider, potentially simplifying this complicated area of law.