Moveable transactions – Scotland v England: Round 1 – assigning receivables

Scottish moveable transactions law is currently outdated and much less useful in practice than the law in England and Wales. The Moveable Transactions (Scotland) Act 2023 will bring Scots law up to date when it comes into force and will arguably move it ahead of the law south of the border. This article, first published in the October issue of the Butterworths Journal of International Banking and Financial Law, tests whether or not that is the case when assigning receivables.

 

31 October 2023

KEY POINTS

  • Restrictions on assigning, which are onerous for invoice financing, still work in Scotland unlike in England.
  • There are still more post-insolvency assets in Scotland than England for insolvency practitioners as the Moveable Transactions (Scotland) Act 2023 contains restrictions on assigning rights following an assignor’s insolvency.
  • There are pros and cons of publicity through the Scottish Register of Assignations.
  • There are priority advantages from the Scottish Register of Assignations over England.
  • Is Scotland moving ahead?

To learn more, read the full article here.

Hamish Patrick and Andrew Kinnes, Banking and Finance Partners at Shepherd and Wedderburn LLP, sat on the Advisory Group to the Scottish Law Commission’s Moveable Transactions Project from which the 2023 Act derives and remain actively involved in the implementation of the 2023 Act.

Author(s):
Andrew Kinnes ,  Hamish Patrick