(1) The Bankruptcy and Diligence etc. (Scotland) Act 2007 [2007 asp 3, as amended by the Banking Act 2009 (c.1) s. 253. The provisions modified by these Regulations have not yet been commenced.] has effect in relation to floating charges which are created by or otherwise arise under a financial collateral arrangement with the following modifications.

(2) In section 38 (creation of floating charges) -

(a) in subsection (3), after "subsection (3A)" insert ", subsection (3B)";

(b) after subsection (3A), insert -

"(3B) If a floating charge is created or otherwise arises under a security financial collateral arrangement, it is created when the document granting the floating charge is executed by the company granting the charge and without registration in the Register of Floating Charges.".

(3) In section 39 (advance notice of floating charges), for subsection (4), substitute -

"(4) This section does not apply -

(a) where a company proposes to grant a floating charge in favour of a central institution;

(b) where a floating charge is created or otherwise arises under a security financial collateral arrangement.".

(4) In section 42 (assignation of floating charges), after subsection (4), insert -