Moveable Transactions (Scotland) Act 2023: What You Need To Know

The Moveable Transactions (Scotland) Act 2023 seeks to modernise and simplify the regime for taking security over moveable assets in Scotland, making it easier and more attractive for lenders to take fixed asset security. It should be remembered that Scots law does not have an equivalent concept to an English equitable charge, and therefore all perfection steps must be taken in order to have an enforceable security right in Scotland.

Issues under current regime

• Unable to take security over future assets
• Administratively burdensome to issue intimation notices to perfect assignations in security (over rents, collateral warranties, material contracts, insurance etc.)
• Requirement for delivery of tangible assets to the lender / security agent in order to perfect security (meaning that often fixed security is not taken and a floating charge is relied on)