Part 2Security over Moveable Property
Chapter 1Pledge
Enforcement of pledge
68Secured creditor’s right to sell
(1)
Where a pledge enforcement notice has been served in respect of property, the secured creditor is, subject to any court order that is required under section 66, entitled to sell all or any of that property.
(2)
In selling property by virtue of subsection (1), the secured creditor must take all reasonable steps to ensure that the price obtained is the best reasonably obtainable.
(3)
The secured creditor is entitled to purchase all or any of the property but only—
(a)
in a sale by public auction, and
(b)
for a price no lower than one which bears a reasonable relationship to market value.
F1(3A)
But see also article 16 (secured creditor’s right to sell 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)).
(4)
Any proceeds obtained by virtue of subsection (1) are to be held in trust by the secured creditor until applied under section 77.