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Section 73 Secured creditor’s right to appropriateI1I2C1

Scotland

(1)

Where a pledge enforcement notice has been served, the secured creditor is entitled to appropriate any or all of the encumbered property in accordance with section 74 or (as the case may be) 75 in satisfaction, in whole or in part, of the secured obligation.

(2)

But it is not competent to appropriate by virtue of subsection (1)—

(a)

corporeal property, unless that property is in the possession of the secured creditor, or

(b)

property with a value which exceeds the total of—

(i)

the amount for the time being remaining due under the secured obligation, and

(ii)

such expenses as have reasonably been incurred by the secured creditor in enforcing the pledge,

unless a sum of money equivalent to the amount by which that total is exceeded is set aside by the secured creditor and held in trust until applied under section 77.

F1(3)

See also article 18 (secured creditor’s right to appropriate 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)).

Annotations

Textual amendments

F1

S. 73(3) 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(14) (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. 73 not in force at Royal Assent, see s. 121(2)

I2

S. 73 in force at 1.4.2025 by S.S.I. 2024/378, reg. 2