Certificate of Consignation - Example Deeds

General

A certificate of consignation is registrable by virtue of section 18 of the Conveyancing and Feudal Reform (Scotland) Act 1970.

The effect of registration of a valid certificate of consignation is that land or a right in land (e.g. a lease) is disburdened of a standard security specified in the certificate. Consequently, a certificate of consignation acts like a discharge of standard security. Discharging Securities explains when a certificate of consignation can be used.

A certificate of consignation is effectively a certificate which runs in the name of a solicitor. It should be executed by the granter and should meet the requirements for self-evidencing status as regards the granter's execution.

There are two statutory forms of the certificate, both of which are set out in Form D of Schedule 5 of the 1970 Act: see Examples below.

Useful Links

Discharge of Standard Security - Example Deeds

Securities Section Information

Examples

Form D - No 1 - whole amount outstanding consigned to Bank

I, A.B. (designation) (solicitor) certify that consignation of the whole amount due under the standard security aftermentioned was made as after stated and was necessitated by reason of a discharge being unobtainable after due notice of redemption had been given.

STANDARD SECURITY for £ (or a maximum of £ ; in other cases describe as indicated in Note 2 to Schedule 4 to this Act) by C.D. in favour of E.F. registered in the Land Register of Scotland on ....over title number....(or recorded in the Register for ....on .......) ........................ on.................................

AMOUNT CONSIGNED £ , being £ of principal, £ of interest and £ in respect of ascertained expenses.

BANK IN WHICH CONSIGNED (specify bank or branch of bank, with address, in which above amount consigned) conform to deposit receipt dated .................. in name of the person appearing to have the best right thereto (specifying his name and designation if known) (or if he is only a partial creditor say to the extent of £ ).

[Testing clause]

(Guidance Note 2 to Schedule 4 indicates that "a standard security in respect of a personal obligation constituted in an instrument or instruments other than the standard security itself may be described by specifying shortly the nature of the debt or obligation and referring to the other instrument or instruments by which it is constituted in such manner as will be sufficient identification thereof.)

Form D - No 2 - court declarator obtained

1, A.B. (designation) (solicitor) certify that a decree of declarator of performance of the obligations of the debtor under the standard security aftermentioned was pronounced as after stated and was necessitated by reason of a discharge being unobtainable after due notice of redemption had been given.

STANDARD SECURITY by C.D. in favour of E.F. registered in the Land Register of Scotland on....over title number..... (or recorded in the Register for ........................ on ........................

DECREE OF DECLARATOR by the Sheriff of ..................... at ........................ in the application of the said C.D. (or J.K. (designation), who is now the debtor (or the proprietor of the interest in land contained) in the said standard security).

[Testing clause]