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Moveable Transactions (Scotland) Act 2023

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14Asserting defence or right of compensationS
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(1)Except in so far as the debtor and the assignor agree otherwise before [F1the relevant time], the debtor, or any co-debtor, may assert against the assignee any defence which the debtor, or co-debtor, would have had the right to assert against the assignor.

[F2(1A)For the purposes of subsection (1), the “relevant time” is—

(a)where the claim is held by the assignor immediately prior to the assignation document being granted in respect of the claim, the time at which the document is granted,

(b)where the claim is not held by the assignor until after the assignation document is granted in respect of the claim, the time at which the claim is transferred.]

(2)Nothing in subsection (1) affects the operation of any other enactment which restricts or prevents the making of such an agreement.

(3)For the purposes of any enactment or rule of law concerning compensation, set-off, retention, balancing of accounts or counterclaims, a debtor is not to be treated as receiving notice of the assignation of a claim [F3by reason only of (any or all of)—

(a)an assignation document’s having been registered in respect of the claim,

(b)the application of section 8(9),

(c)the application of section 8(10).]

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Commencement Information

I1S. 14 not in force at Royal Assent, see s. 121(2)

I2S. 14 in force at 1.4.2025 by S.S.I. 2024/378, reg. 2

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