Moveable Transactions (Scotland) Bill—Assignation of Claims

Table of contents

• Who will benefit from the new law?
• Terminology
• The problem to be solved
• Assignment of Claims
• Warranties
• When does the assignation become effective?
• Registration of the assignation in security at Companies House
• Is Scots law the relevant jurisdiction?
• Protection of debtors
• Insolvency issues

Article summary

Restructuring & Insolvency analysis: This is one of a series of articles we at Morton Fraser are producing to guide finance companies through the wholesale change proposed in Scots law in relation to security over goods, intellectual property and shares, on the one hand, and invoice finance or the purchase of receivables, on the other. The Moveable Transactions (Scotland) Bill (the Bill) is slated to move through the Scottish Parliament this session, so, while detail may change during that passage and statutory instruments will be required before it can become effective law, it is now timely to start preparing for the new regime. This News Analysis by Bev Wood at Morton Fraser LLP considers the new process for assigning debts, referred to in the Bill as ‘Assignation of Claims’.