Part 2Security over Moveable Property

Chapter 1Pledge

Statutory pledge

47Competence of creating statutory pledge over certain kinds of property

(1)

It is not competent to create a statutory pledge over corporeal property which is—

(a)

an aircraft in respect of which it is competent to register a mortgage in the register of aircraft mortgages kept by the Civil Aviation Authority,

(b)

an aircraft object (as defined in regulation 5 of the International Interests in Aircraft Equipment (Cape Town Convention) Regulations 2015 (S.I. 2015/912)), or

(c)

a ship (or a share in a ship) in respect of which it is competent to register a mortgage in the register of British ships maintained for the United Kingdom under section 8 of the Merchant Shipping Act 1995.

(2)

It is not competent to create a statutory pledge over incorporeal property unless that property is—

(a)

intellectual property, or

(b)

an application for, or licence over, intellectual property.

F1(2A)

But see also article 5 (competence of creating statutory pledge over financial instrument) 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)).

(3)

The Scottish Ministers may by regulations modify this section so as to specify further kinds of incorporeal property over which it is competent to create a statutory pledge.