Moveable Transactions Bill passed

Businesses will be able to borrow more easily against assets such as whisky stores and machinery under legal reforms passed by the Scottish Parliament.

The Moveable Transactions (Scotland) Bill, which aims to make it easier for businesses to raise finance, will also enable them to borrow against intellectual property such as trademarks and patents, as well as making various kinds of commercial transactions more efficient and less expensive.

Public Finance Minister Tom Arthur toured Glenkinchie Distillery ahead of the final debate and vote. He said:

“This is a significant step forward in modernising the law, and I’m pleased that MSPs have agreed to reform the old rules and bring borrowing practices in Scotland in line with other countries.

“Businesses will now be able to borrow more easily against assets they own such as machinery and intellectual property rights by raising finance against them.

“These changes will make processes easier and cheaper as it is hoped lenders will be more likely to charge lower interest rates given that they will be lending against secured assets.

“Better access to finance will support innovation, and by improving the current inefficient and expensive methods of raising finance, the Scottish Government is helping drive forward Scotland’s economic recovery in line with our National Strategy for Economic Transformation.”

Background

Press photos of Mr Arthur's visit to Glenkinchie Distillery are available on Flickr.

The Moveable Transactions (Scotland) Bill will implement the recommendations of the Scottish Law Commission Report on Moveable Transactions.

Moveable assets covered by the Bill include machinery, vehicles and goods such as whisky stores as well as intellectual property like trademarks or patents.

The aims of the Bill will bring benefits to all Scottish businesses, no matter their size or profile. 

The Minister's opening statement during the final vote on the Bill is available on the Scottish Government's website.