Jonathan Hardman

Moveable Transactions Reform in Scotland: acquiescence and the perils of over-pledging

This article identifies certain practical challenges in respect of taking Scottish statutory pledges (SSPs) under the recently passed and not-yet-in-force Moveable Transactions (Scotland) Act 2023. It identifies that SSPs will be released if lenders informally acquiesce in the transfer of part of the pledged property, and argues that pledging too many assets, especially current assets, is an avoidable danger to an SSP.