Under the Moveable Transactions (Scotland) Act 2023, major changes to how to create effective fixed security over certain types of assets located in Scotland (including Scottish shares and bank accounts) took effect on 1 April 2025.
Two new forms of fixed security over assets a statutory pledge and an assignation of claims introduce more streamlined ways of taking fixed security over certain assets, reduce the administrative burden, and allow fixed security to be created over current and future assets (including by certain individuals and corporate entities which can’t grant floating charges).
For current and potential deals, lenders/security agents should consider taking security over Scottish assets under the new regime (and for existing deals, whether there is scope under existing debt documents (for example, undertakings or further assurance provisions) to take advantage of the new regime to have a more robust Scottish security package).
We’ve updated our guide to the Act. Please contact Chris.McLauchlan@wbd-uk.com and/or Beate.McBurnie@wbd-uk.com if you have any questions.