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Section 12 Performance in good faith where claim assigned cannot be transferred by intimationI1I2C1

Scotland

(1)

Subsection (2) applies where—

(a)

by virtue only of being of a type prescribed under section 3(8), a claim in respect of which an assignation document is granted is not transferred, and

(b)

the debtor, or any co-debtor, performs in good faith to the assignee.

(2)

The debtor, or (where there are two or more co-debtors) each of the co-debtors, is discharged from the claim to the extent of the performance.

(3)

For the purposes of subsection (1)(b), a debtor, or co-debtor, is not to be taken to perform in good faith where that debtor or co-debtor knows—

(a)

that the assignation document has not been registered, and

(b)

that transfer of the claim requires registration.

Annotations

Modifications

C1

Pt. 1 extended (with modifications) (1.4.2025) by The Moveable Transactions (Scotland) Act 2023 (Financial Collateral Arrangements and Financial Instruments) (Consequential Provisions and Modifications) Order 2025 (S.I. 2025/275), arts. 1(2), 3 (with arts. 4, 20)

Commencement

I1

S. 12 not in force at Royal Assent, see s. 121(2)

I2

S. 12 in force at 1.4.2025 by S.S.I. 2024/378, reg. 2