Part 1 Assignation

Chapter 1 Assignation of claims, protection of debtors and related matters

Protection of debtors

10 Protection of debtor who performs in good faith
(1) Subsection (2) applies where, after a claim is transferred, the debtor, or any co-debtor, performs in good faith to the person last known to the debtor, or that co-debtor, to be the holder of the claim.
(2) The debtor, or (where there are two or more co-debtors) each of the co-debtors, is discharged from the claim to the extent of the performance.
(3) For the purpose of subsection (2), it is not to be taken that a debtor, or any co-debtor, has performed other than in good faith by reason only of (any or all of)—
(a) an assignation document’s having been registered,
(b) the application of section 8(9),
(c) the application of section 8(10).

S. 10 not in force at Royal Assent, see s. 121(2)
S. 10 in force at 1.4.2025 by S.S.I. 2024/378, reg. 2
Pt. 1 extended (with modifications) (1.4.2025) by The Moveable Transactions (Scotland) Act 2023 (Financial Collateral Arrangements and Financial Instruments) (Consequential Provisions and Modifications) Order 2025 (S.I. 2025/275), arts. 1(2), 3 (with arts. 4, 20)