New law is modernising the way lenders can take security in fund finance transactions with a Scottish dimension. We looked at how security is currently taken in fund finance transactions, including security over general and limited partner interests in Scottish limited partnerships (SLPs) and over bank accounts, and how this will change when the Moveable Transactions (Scotland) Act 2023 (MTA) comes into force.
Our speaker panel Eilidh McMillan, Jamie Steel, and Megan Vasey (all from our Banking & Finance team) covered:
- the different elements of the security package where an SLP is in the fund structure;
- current methods of intimating assignations and modernised notice provisions under the MTA;
- the ability to assign rights by registration (without notice) under the MTA;
- uses of the new statutory pledge in fund finance transactions; and
- other legislative changes affecting SLPs
