§ 236A Line 7, leave out (", retention or preference") and insert ("or preference and any right of retention (other than a right of compensation or set off)").
§
375 Clause 190, page 151, line 11, leave out subsection (5) and insert—
'(5) Subject to subsections (6) and (7) below and any provision of the rules requiring a creditor to give up his security for the purposes of proving a debt, a debt is secured for the purposes of this Part to the extent that the
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person to whom the debt is owed holds any security for the debt (whether a mortgage, charge, lien or other security) over any property of the person by whom the debt is owed.'.
§ 376 Page 151, line 28, leave out 'lien' and insert 'security'.
§ 381 Clause 191, page 153, line 38, at end insert—
§ ' "security" means any mortgage, charge, lien or other security.'
§ These amendments were made in response to comments received from the legal profession. They harmonise the definition of the term "security" throughout the Bill. The amendment in the name of my noble friend to Amendment No. 236 makes certain technical adjustments to the definition of "security" for the purposes of Scotland. It excludes from the Scottish definition of "security" any right of set-off or compensation which would otherwise have been included in the reference to a right of retention. This brings the position in Scotland into line with that in England and Wales. I beg to move.
§ Moved, That this House do agree with the Commons in their Amendment No. 59.—(Lord Cameron of Lochbroom.)
Lord Bruce of DoningtonMy Lords, may I say how pleasant it is to have the noble and learned Lord appearing in these proceedings and to say that we accept the explanations that he has given.
§ On Question, Motion agreed to.