Commentary on Sections Central banks Section 253: Registration of charges: Scotland
566.This section is consequential to section 252 above, and provides that the disapplication of Part 25 of the Companies Act (and related provisions) as provided for in section 252, shall also apply to the Bankruptcy and Diligence (Scotland) Act 2007 (the 2007 Act) which introduces a registration scheme for Scottish floating charges. This section therefore disapplies certain provisions of the 2007 Act, where these provisions would restrict the efficacy of section 252 above and for the same reasons as Part 25 of the Companies Act 2006 is disapplied.
567.Subsection (2) amends the 2007 Act such that, where floating charges covered by the Act are to be granted to a central bank, they are considered to have been created when the document creating the charge is executed. This alters the standard provisions with regard to the 2007 Act which stipulates that floating charges subject to the 2007 Act are created only when registered on the Scottish Register of Floating Charges. This provision will continue to apply except for cases where the charge is in favour of a ‘central institution’, that is, the Bank of England or another central bank (as defined in subsection (7)).
568.Subsections (3) to (6)  further amend the 2007 Act in such a way as to ensure that floating charges issued in favour of a central institution are not required to be registered, by disapplying the appropriate provisions of that Act.