Example 3
98.In terms of subsection (3), if the assignee acquires a security under this section then the assignor is required as soon as reasonably practicable to perform any steps necessary to transfer the security. For example, in the case of a standard security, an assignation under section 14 of the Conveyancing and Feudal Reform (Scotland) Act 1970 would require to be registered in the Land Register of Scotland to be effective. If this is not done, it would be open to the assignee to enforce their right to this by making a claim for specific implement against the assignor.
99.Subsection (4) defines “security” as including both a right in security (see section 41(1) of the Act) and cautionary obligations. A cautionary obligation is an accessory obligation given by a third party to ensure that a debt will be paid (for example, a personal security or guarantee).
