Part 2SSecurity over Moveable Property

Chapter 1SPledge

Enforcement of pledgeS

68Secured creditor’s right to sellS

(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.

Textual Amendments

Commencement Information

I1S. 68 not in force at Royal Assent, see s. 121(2)

I2S. 68 in force at 1.4.2025 by S.S.I. 2024/378, reg. 2