Statutory pledge 15 43 Constitutive document (1) A statutory pledge requires a constitutive document. (2) The constitutive document must— (a) be executed or authenticated by the provider, (b) identify the property which is to be the encumbered property, and 20 (c) identify the obligation which is to be the secured obligation. (3) Subject to section 48(2)— (a) if the encumbered property is to consist of more than one item, the constitutive document must— (i) identify each item separately, or 25 (ii) identify the items in terms of their constituting an identifiable class, and (b) the property identified (whether separately or as a class) as the property which is to be the encumbered property may be either property of, or property to be acquired by, the provider. 44 Competence of creating statutory pledge over certain kinds of property 30 (1) It is not competent to create a statutory pledge over corporeal property which is— (a) an aircraft in respect of which it is competent to register a mortgage in the register of aircraft mortgages kept by the Civil Aviation Authority, (b) an aircraft object (as defined in regulation 5 of the International Interests in Aircraft Equipment (Cape Town Convention) Regulations 2015 (S.I. 2015/912)), or 35 (c) a ship (or a share in a ship) in respect of which it is competent to register a mortgage in the register of British ships maintained for the United Kingdom under section 8 of the Merchant Shipping Act 1995. 26 Moveable Transactions (Scotland) Bill Part 2—Security over Moveable Property Chapter 1—Pledge (2) It is not competent to create a statutory pledge over incorporeal property unless that property is— (a) intellectual property, or (b) an application for, or licence over, intellectual property. 5 (3) The Scottish Ministers may by regulations modify this section so as to specify further kinds of incorporeal property over which it is competent to create a statutory pledge. 45 Creation of statutory pledge by registration: general (1) A statutory pledge is created over property which is identified in a constitutive document in accordance with section 43 on the requirements mentioned in subsection (2) all being 10 met. 1 (2) Those requirements are that— (a) the property is the provider’s, (b) the statutory pledge is registered, and (c) the property is identifiable as property to which the constitutive document relates. 15 (3) Subsection (2)(b) is subject to section 89 (effective registration of statutory pledge) and, accordingly, the requirement of that subsection— (a) is not met if the registration of the constitutive document is ineffective in accordance with section 89(1), and (b) is met if and when that registration becomes effective in accordance with section 20 89(3). (4) This section is subject to section 47 (creation of statutory pledge: insolvency). 46 Creation of statutory pledge over added property (1) Where a statutory pledge is amended so as to add property to the encumbered property by means of an amendment document under section 56, a statutory pledge is created 25 over the added property on the requirements mentioned in subsection (2) all being met. (2) Those requirements are that— (a) the added property is the provider’s, (b) the amendment is registered, and (c) the added property is identifiable as property to which the amendment document 30 relates. (3) Subsection (2)(b) is subject to section 90 (effective registration of amendment to statutory pledge) and, accordingly, the requirement of that subsection— (a) is not met if the registration of the amendment document is ineffective in accordance with section 90(1), and 35 (b) is met if and when that registration becomes effective in accordance with section 90(3). (4) This section is subject to section 47 (creation of statutory pledge: insolvency). 27 Moveable Transactions (Scotland) Bill Part 2—Security over Moveable Property Chapter 1—Pledge 47 Creation of statutory pledge: insolvency (1) This section applies where— (a) the property identified (whether separately or as a class) as the property which is to be the encumbered property under a statutory pledge is or includes property to 5 be acquired by the provider, and (b) after the pledge is granted, the provider becomes insolvent. (2) The statutory pledge is not created over any property which, though identified by the constitutive document or by an amendment document as property to be encumbered, is acquired by the provider after becoming insolvent. 10 (3) For the purposes of subsection (2)— 1 (a) a provider who is an individual, or the estate of which may be sequestrated by virtue of section 6 of the Bankruptcy (Scotland) Act 2016, becomes insolvent when— (i) the provider’s estate is sequestrated, 15 (ii) the provider grants a trust deed for creditors or makes a composition or arrangement with creditors, (iii) the provider is adjudged bankrupt, (iv) a voluntary arrangement proposed by the provider is approved, (v) the provider’s application for a debt payment programme...