Overview of the Act
4.The Act has 122 sections. Section 120 is the main interpretation section in the Act but there are also separate interpretation sections for each of Part 1 and Part 2. The Act is organised into three Parts as follows:
Part 1 makes provision about the law of assignation of claims in Scotland. Chapter 1 consolidates and modernises the law on assignation of claims, which includes introducing registration as an alternative means to completing an assignation and providing for the protection of debtors. Chapter 2 provides for the establishment and operation of the new Register of Assignations. Chapter 3 repeals the existing law on assignation of debt in Scotland and also includes a section on the interpretation of Part 1.
Part 2 modernises the law on security over moveable property in Scotland. Chapter 1 updates and consolidates the law of pledge (including possessory pledge). It also introduces the statutory pledge. Chapter 2 provides for the establishment and operation of the new Register of Statutory Pledges. Chapter 3 removes the ability to create an agricultural charge and also includes a section on the interpretation of Part 2.
Part 3 provides for the interpretation of terms that are used in both Part 1 and Part 2, and provides for general matters such as ancillary provision and secondary legislation. It also includes provision allowing the Keeper of Registers of Scotland to operate the registers and carry out related duties electronically, makes provision about the registration of electronic documents, and makes provision about the burden of proof where there is a dispute as to whether a party is in good faith. It also provides for a review of the Act to be carried out.
