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Section 72 Secured creditor’s right to protect and manage the propertyI1I2C1

Scotland

(1)

A secured creditor who, by virtue of section 68(1), is entitled to sell property is entitled to take reasonable steps to—

(a)

protect, maintain and manage it, and

(b)

preserve its value.

(2)

The right under subsection (1) includes, for example, the right of the secured creditor to—

(a)

effect or maintain an insurance policy in relation to the property,

(b)

settle any liability in relation to the property,

(c)

bring, defend or continue legal proceedings in relation to the property,

(d)

take such other steps as the provider has agreed (whether before or after the pledge becomes enforceable by virtue of section 64(2)) may be taken by the secured creditor.

F1(2A)

See also article 17 (secured creditor’s right to protect and manage financial instrument) of the Moveable Transactions (Scotland) Act 2023 (Financial Collateral Arrangements and Financial Instruments) (Consequential Provisions and Modifications) Order 2025 (S.I. 2025/275 (S. 1)).

(3)

Subsection (1) is without prejudice to section 67(2)(b).

Annotations

Textual amendments

F1

S. 72(2A) inserted (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), 22(13) (with art. 20)

Modifications

C1

Pt. 2 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), 5 (with arts. 6-20)

Commencement

I1

S. 72 not in force at Royal Assent, see s. 121(2)

I2

S. 72 in force at 1.4.2025 by S.S.I. 2024/378, reg. 2