Taking security under Scots law
Produced in partnership with Addleshaw Goddard
Taking security under Scots law

The following Banking & Finance guidance note Produced in partnership with Addleshaw Goddard provides comprehensive and up to date legal information covering:

  • Taking security under Scots law
  • Types of security
  • Fixed security
  • Floating Charge

Types of security

The types of security available under Scots law are more restricted than those available under English law. The security available is determined by the type of assets to be secured. This Practice Note examines the security which can be obtained over certain specific asset categories before discussing the floating charge, which is a security which can be granted by Scottish companies or limited liability partnerships.

Fixed security

Land and buildings

The form of fixed security which can be granted by both individuals and companies over real estate assets in Scotland is the standard security. The standard security can be granted over an interest in land which may be recorded in the Register of Sasines or the Land Register of Scotland. The standard security is a creation of statute (Conveyancing and Feudal Reform (Scotland) Act 1970) and as a consequence certain provisions are imported into the security. These relate to warrandice (statements relating to the borrower's title to the interest in land being secured) and to certain standard conditions. The standard conditions cover such matters as maintenance and repair of the property, restrictions as to planning and development of the property, letting, when the borrower is held to be in default and the creditor's powers on default. It is possible to amend certain of these imported