Scottish Law Commission Publishes Report On Moveable Transactions

On 19 December, the Scottish Law Commission ("SLC") published its three-part report on the reform of moveable transactions. The law in Scotland in this area is outdated and cumbersome to use in practice, creating problems particularly in the context of asset finance, project finance and securitisation transactions. By creating a more flexible system which more readily meets the needs of modern commerce in Scotland, the proposed reforms will, if enacted, hopefully have a positive impact on financiers, investors and Scottish businesses.

In summary, the key recommendations of the SLC in its draft bill are:

• Claims to payment may transfer by registration of the assignation in a new electronic register called the 'Register of Assignations', as an alternative to intimation. This would facilitate the assignation of future claims.