Summary of the Act
The Act contains eight sections, which can be summarised as follows.
Section 1 contains a definition of "paper trade document". It sets out the criteria that a document must satisfy in order to qualify as a "paper trade document". It also sets out a non-exhaustive list of trade documents that are commonly used in connection with trade in or transport of goods, or financing such trade or transport. This section effectively sets the scope for the types of trade documents that could be caught by the Act.
Section 2 contains a definition of "electronic trade document". It sets out the criteria that a trade document in electronic form must satisfy in order to qualify as an "electronic trade document", and to therefore be capable of possession.
Section 3 provides for the possession and indorsement of electronic trade documents. It also provides that an electronic trade document has the same effect as an equivalent paper trade document, and that anything done in relation to an electronic trade document has the same effect (if any) as it would have in relation to an equivalent paper trade document. It further provides that electronic trade documents are to be treated as corporeal moveable property for the purposes of any Act of the Scottish Parliament relating to the creation of a security in the form of a pledge over moveable property.
Section 4 provides for a change of medium or form; that is, the conversion of a paper trade document into an electronic trade document, or an electronic trade document into a paper trade document.
Section 5 contains an "opt-out" provision which, if applicable, will mean that sections 3 and 4 of the Act will not apply to the relevant electronic trade document. It also excludes uncertificated securities from the scope of sections 1 to 4 of the Act, and provides a power to amend section 5 so as to amend or remove the uncertificated securities exception, or to add to the list of documents or instruments excluded (subject, where relevant, to prior consultation with the Scottish Ministers).
Section 6 sets out the procedural requirements for the use of the amending power contained in section 5 and confirms that it is exercisable by statutory instrument.
Section 7 is the consequential amendments section. It sets out an amendment to the Bills of Exchange Act 1882, and provides for the repeal of certain provisions of the Carriage of Goods by Sea Act 1992.
Section 8 sets out the territorial extent of the Act, the commencement date and the short title.