THE STANDARD SECURITY (Hansard, 11 May 1970)

§ Mr. Buchan

I beg to move Amendment No. 26, in page 8, line 12, after ' used ', insert ', or if used as is required by this Act'. The effect of this Amendment is to make it clear that a standard security used as required by the Bill is a " heritable security " for the purpose of any enactment affecting heritable securities.

The need for this provision is due to the fact that in a number of Acts there are incidental references to " heritable securities ". The obvious example is the Countryside (Scotland) Act 1967 where it says that there is provision in certain circumstances for the payment by a local 918 planning authority of compensation to a creditor in a heritable security. The Act provides that " heritable security " has the same meaning as in the Conveyancing (Scotland) Act 1924.

A standard security is not, any longer under the Bill, a heritable security as defined under the 1924 Act so that heritable creditors under a standard security would not be covered by the provisions of the Countryside Act. This is the reason why we have laid it out in this way.

§ Mr. Buchan

I beg to move Amendment No. 27, in line 40, leave out first ' to' and insert ' which will or may '.

This is a drafting Amendment made in consultation with the Law Society to clarify the point that the definition of " debt " in Clause 8(8)(c) means any obligation due or which will or may become due to repay or pay money. The new formula deals with the type of situation where a heritable security is granted to secure a contingent obligation, the kind of case where, in the event of the non-performance of a contract, a financial penalty is prescribed and the amount of that penalty is secured by a standard security.

The trouble is that it may be that the debt, that is, the amount of the penalty, will never become due because the contract may be performed. In other words, we have to cover this kind of case explicitly. The Amendment originates from a comment by the Law Society of Scotland and has been endorsed by Professor Halliday.