EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Moveable Transactions (Scotland) Act 2023 (asp 3) (“the 2023 Act”). They make modifications and minor corrections for the purposes of, in connection with and for giving effect to the 2023 Act.

Sections 4(6) and 50(3) of the 2023 Act define insolvency for the purposes of the rules in the 2023 Act in relation to assignation and statutory pledge. Regulation 2(2) and (6) amends the 2023 Act by omitting sections 4(6)(a)(v) and 50(3)(a)(v) to remove an assignor or provider’s application for an approved debt payment programme under section 2 of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) from those provisions.

Regulations 2(3) and (4)(a) and (b) amend sections 6(3) and 14(1) of the 2023 Act, being limitations as to assignability and defences respectively. The effect of the amendments is the same – so agreements or statements that a claim is not to be assigned can be made, or defences can be asserted, under those provisions in the 2023 Act respectively, in relation to both existing claims and future claims not yet held by the assignor when an assignation was granted.

Regulation 2(4)(c) amends section 14(3) of the 2023 Act with the effect that a debtor is not to be treated as receiving notice of an assignation for the purposes of a right of compensation etc. if an assignation document relating to the claim is registered or if intimation (notice) is deemed to have been received under section 8(9) and (10) of the 2023 Act.

Regulation 2(5) and (7) amends the 2023 Act to correctly reference the parliamentary procedure to be used by the Scottish Ministers when making rules by way of regulations for the Register of Assignations and Register of Statutory Pledges, in sections 39 and 111 of the 2023 Act respectively.