Part 2 Security over Moveable Property

Chapter 1 Pledge

Statutory pledge

46 Competence of individual acting as provider of a statutory pledge
(1) It is not competent for an individual to be the provider of a statutory pledge unless—
(a) the individual is acting in the course of—
(i) the individual’s business,
(ii) the activities of a charity of which the individual is a trustee, or
(iii) the activities of an unincorporated association (other than a charity) of which the individual is a member, and
(b) the encumbered property is a permitted asset, or consists only of permitted assets.
(2) For the purpose of subsection (1)(b), an asset is a “permitted asset” if—
(a) it is (as the case may be)—
(i) used, or to be used, wholly or mainly for the purposes of the individual’s business,
(ii) an asset of the charity, or
(iii) owned by the individual on behalf of, or jointly with the other members of, the association, and
(b) in the case of corporeal property, it has a monetary value exceeding £3,000 immediately before the document under which it will become encumbered property is granted.
(3) The Scottish Ministers may by regulations—
(a) modify subsection (2)(b) so as to modify the amount for the time being specified there,
(b) modify this section so as to specify types of property which are or are not permitted assets.
(4) For the purposes of this section—
(a) “charity” means—
(i) a charity within the meaning of section 106 of the Charities and Trustee Investment (Scotland) Act 2005, or
(ii) an organisation managed or controlled wholly or mainly outwith Scotland and which is registered in a register equivalent to the Scottish Charity Register (kept under section 3 of that Act) for the purposes of the country in which it operates,
(b) a trustee of a charity is one of the persons having the general control and management of the administration of the charity.
S. 46 not in force at Royal Assent, see s. 121(2)