Part 7Miscellaneous

Central banks

253Registration of charges: Scotland

(1)

The Bankruptcy and Diligence etc. (Scotland) Act 2007 is amended as follows.

(2)

In section 38 (creation of floating charges)—

(a)

in subsection (3), after “to” insert “ subsection (3A) and ”, and

(b)

after that subsection insert—

“(3A)

If a floating charge is granted in favour of a central institution, it is created only when the document granting the floating charge is executed by the company granting the charge.”

(3)

In section 39 (advance notice of floating charges), after subsection (3) add—

“(4)

This section does not apply where a company proposes to grant a floating charge in favour of a central institution.”

(4)

In section 42 (assignation of floating charges), after subsection (3) add—

“(4)

This section does not apply where a floating charge is assigned (whether in whole or to a specified extent) to or by a central institution.”

(5)

In section 43 (alteration of floating charges)—

(a)

in subsection (4), for “But paragraph” substitute “ Paragraph ”, and

(b)

after that subsection insert—

“(4A)

Paragraph (b) of subsection (3) above does not apply in respect of an alteration if—

(a)

the holder of the floating charge is a central institution, or

(b)

the holder of the floating charge is not a central institution but the alteration is to be made in connection with a floating charge which is held (or which has been or is to be held) by a central institution.”

(6)

In section 44 (discharge of floating charges), after subsection (3) add—

“(4)

This section does not apply where the floating charge to be discharged (whether in whole or to a specified extent) is or has been held by a central institution.”

(7)

In section 47 (interpretation), after “Part—” insert—

““central institution” means—

  1. (a)

    the Bank of England,

  2. (b)

    the central bank of a country or territory outside the United Kingdom, or

  3. (c)

    the European Central Bank;”