Scotland continues to advance new and innovative ways for businesses to thrive via alternative financial vehicles. On May 25, 2022 Scotland’s Parliament introduced a new bill titled, “Moveable Transactions (Scotland) Bill.” In essence, the legislation proposes allowing ‘movable’ property to be engaged as finance collateral. Specific to third party funding opportunities, the Movable Transactions Bill also includes intellectual property (such as patents) to be engaged as a vehicle to secure advance funding.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Scotland continues to advance new and innovative ways for businesses to thrive via alternative financial vehicles. On May 25, 2022 Scotland’s Parliament introduced a new bill titled, “Moveable Transactions (Scotland) Bill.” In essence, the legislation proposes allowing ‘movable’ property to be engaged as finance collateral. Specific to third party funding opportunities, the Movable Transactions Bill also includes intellectual property (such as patents) to be engaged as a vehicle to secure advance funding.
According to the proposed bill, a ‘pledge’ can be engaged just like traditional litigation finance agreements. Specifically, the pledge would be a facility that can be used as collateral to issue a loan. The loan would be repaid at a later date, similar to a litigation investment contract. In this case, the non-recourse functionality of traditional litigation finance would not be applicable. The bill’s use for funding litigation may sound abstract, however, the overall concept is innovative as Scotland’s alternative finance sector grows.
As we recently reported, the Law Society of Scotland has covered third party funding’s usage in group actions such as the ‘Post Office Scandal.’ Hence, the Movable Transactions Bill may hold potential benefits to help the people of Scotland finance their way to justice.
