Moveable Transactions (Scotland) Act 2023

42PledgeS
This section has no associated Explanatory Notes

(1)A pledge is created in accordance with this section.

(2)Where a pledge is to be created over moveable property which is corporeal only, the pledge is created—

(a)by delivery of the property to the secured creditor, provided that the property is the provider’s at the time of delivery,

(b)in a case where the property is not the provider’s at the time of such delivery, on the property becoming the provider’s subsequent to such delivery, or

(c)by registration in accordance with section 48 or 49.

(3)Where a pledge is to be created over moveable property which is—

(a)incorporeal only, or

(b)both corporeal and incorporeal,

the pledge is created by registration in accordance with section 48 or 49.

(4)A pledge created by registration in accordance with section 48 or 49 is to be known as a “statutory pledge”.

(5)Nothing in this section affects any rule of law which existed prior to the commencement of this section whereby a pledge may be created over a negotiable instrument, and nothing in this Part applies in relation to any pledge created in accordance with such a rule.

[F1(6)See also Part 3 of the Moveable Transactions (Scotland) Act 2023 (Financial Collateral Arrangements and Financial Instruments) (Consequential Provisions and Modifications) Order 2025 (S.I. 2025/275 (S. 1)).]

Textual Amendments

Modifications etc. (not altering text)

Commencement Information

I1S. 42 not in force at Royal Assent, see s. 121(2)

I2S. 42 in force at 1.4.2025 by S.S.I. 2024/378, reg. 2