SP Bill 15B Session 6 (2023) 2 Moveable Transactions (Scotland) Bill Part 1—Assignation Chapter 1—Assignation of claims, protection of debtors and related matters 2 Assignation of claim subject to a condition (1) The assignation of a claim may be subject to a condition which must be satisfied before the claim is transferred. (2) Any such condition must be specified in the assignation document. 5 (3) The condition may, for example— (a) be the occurrence of a particular date, (b) depend on something happening (whether or not it is certain that the thing will happen), or (c) depend on a period of time elapsing during which something must not happen 10 (whether or not it is certain that the thing will happen at some time). 1 (4) For the purposes of subsection (2), the ways in which the condition can be specified in the assignation document include by making reference in the assignation document to another document, the terms of which are not reproduced. 3 Transfer of claims 15 (1) A claim in respect of which an assignation document is granted is transferred on the requirements mentioned in subsection (2) all being met. (2) Those requirements are that— (a) the assignor is the holder of the claim, (b) either— 20 (i) intimation of the assignation is effected under section 8(1), or (ii) the assignation document is registered, (c) the claim is identifiable as a claim to which the assignation document relates, and (d) if the assignation is subject to a condition which must be satisfied before the claim is transferred, the condition is satisfied. 25 (3) For the purposes of subsection (1), if the claim is a claim such as is mentioned in section 1(4)— (a) the requirement mentioned in subsection (2)(a) is met when the assignor becomes the holder of the claim, and (b) any rule of law as to accretion does not apply in relation to the claim. 30 (4) Subsection (2)(b)(ii) is subject to section 25 (effective registration of assignation document) and, accordingly, the requirement of that subsection— (a) is not met if the registration of the assignation document is ineffective in accordance with section 25(1), and (b) is met if and when that registration becomes effective in accordance with section 35 25(3). (5) Subsection (6) applies where— (a) an assignor grants more than one assignation document in respect of the same claim, 3 Moveable Transactions (Scotland) Bill Part 1—Assignation Chapter 1—Assignation of claims, protection of debtors and related matters (b) each of the purported assignations of the claim is to a different person, and (c) the requirements of subsection (2) are all met in relation to each of the purported assignations at the same time by virtue of— (i) the assignor becoming the holder of the claim, 5 (ia) the claim becoming identifiable as a claim to which the assignation document relates, or (ii) where each of the purported assignations is subject to a condition which must be satisfied before the claim is transferred, those conditions being satisfied at the same time. 10 (6) The claim transfers under subsection (1) to the person to whom it is assigned by 1 whichever of the purported assignations of the claim first met the requirement of subsection (2)(b). (7) This section is subject to section 4 (assignation of claims: insolvency). (8) The Scottish Ministers may by regulations prescribe types of claim in relation to which 15 sub-paragraph (i) of subsection (2)(b) is to be disregarded. 4 Assignation of claims: insolvency (1) This section applies where— (a) an assignation document is granted in respect of a claim such as is mentioned in section 1(4), and 20 (b) after the document is granted, the assignor becomes insolvent. (2) The assignation is ineffective in relation to the claim if the assignor becomes the holder of the claim after becoming insolvent. (3) But subsection (2) does not apply in relation to a claim in respect of income from property in so far as that claim— 25 (a) is not attributable to anything agreed to by, or done by, the assignor after the assignor became insolvent, and (b) relates to the use of property in existence at the time the assignor became insolvent. (4) Subsection (5) applies where— (a) but for subsection (3), the assignation would be ineffective by virtue of subsection 30 (2), and (b) the assignor is discharged— (i) under section 137, 138 or 140 of the Bankruptcy (Scotland) Act 2016, or (ii) by virtue of section 184(3) of that Act. (5) The assignation is ineffective, in relation to the claim, if by the time of discharge the 35 assignor has not become the holder of the claim. 4 Moveable Transactions (Scotland) Bill Part 1—Assignation Chapter 1—Assignation of claims, protection of debtors and related matters (6) For the purposes of this section— (a) an assignor 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— 5 (i) the assignor’s estate is sequestrated, (iib) the assignor grants a trust deed for creditors or makes a composition or arrangement with creditors, (iii) the assignor is adjudged bankrupt, (iv) a voluntary arrangement proposed by the assignor is approved, 10 (v...