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Section 16 Accessory security rightsI1I2C1

Scotland

(1)

Subsections (2) and (3)—

(a)

apply, and apply only, in relation to any claim assigned in whole, but

(b)

are subject to any express provision to the contrary in the assignation document.

(2)

Subject to anything which requires to be done under subsection (3), the assignee acquires, by virtue of the transfer of the claim, any security (in so far as the security is transferable) which relates to, and only to, the claim transferred.

(3)

Where the performance of some act by the assignor is necessary for the security to transfer to the assignee, the assignor must—

(a)

perform that act, and

(b)

do so as soon as reasonably practicable after the claim is transferred.

(4)

In this section, “security” means both—

(a)

a right in security, and

(b)

the correlative right in respect of a cautionary obligation.

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

I2

S. 16 in force at 1.4.2025 by S.S.I. 2024/378, reg. 2