Part 2Security over Moveable Property
Chapter 1Pledge
Enforcement of pledge
I167Secured creditor’s right to take possession of, or steps in relation to, corporeal property
1
This section applies in relation to corporeal property in respect of which a secured creditor in a statutory pledge has served a pledge enforcement notice.
2
Subject to any court order that is required under section 66, the secured creditor is entitled to—
a
take possession of the property, and
b
take any reasonable steps necessary to ensure, whether or not by immobilising the property, that it is not disposed of or used in an unauthorised way,
but only in accordance with subsection (3) or, as the case may be, subsection (4).
3
Where the property is in the possession of a relevant person, the secured creditor may take possession or steps under subsection (2)—
a
with the consent of the relevant person,
b
with the consent of the court, through the agency of an authorised person, or
c
personally, if authorised to do so by the court.
4
Where the property is not in the possession of a relevant person, the secured creditor may take possession or steps under subsection (2)—
a
with the consent of—
i
the provider, given after the pledge becomes enforceable, and
ii
any third party who for the time being either is in direct possession, or has custody, of the property,
b
through the agency of an authorised person, or
c
personally, if authorised to do so by the court.
5
For the purposes of subsections (3) and (4), a “relevant person” is a person who, in respect of the property or of any part of it—
a
has a right in security which has priority in ranking over, or ranks equally with, the pledge to which the pledge enforcement notice relates, or
b
has executed diligence which has priority in ranking over, or ranks equally with, that pledge.
6
In taking possession of the property under subsection (2)(a), the secured creditor is entitled to remove any individual from that property, but only through the agency of an authorised person.
7
In this section, “authorised person” means a messenger-at-arms or sheriff officer.
8
The Scottish Ministers may by regulations modify this section so as to specify further persons, or descriptions of persons, who are authorised persons for the purposes of this section.