On 5 February 2020, the Goods Mortgages Bill (the Bill) had its first reading in the House of Lords.
If the Bill becomes law it will repeal the Bills of Sale Acts 1878 and 1882 and create a new form of non-possessory security that may be created over goods owned by individuals. The Bill allows for individuals who own qualifying goods to create a charge as security for the discharge of an obligation. “Qualifying Goods” as defined in the Bill means “tangible moveable property” other than excluded goods (e.g. aircraft registered in the UK and ships as defined by section 313(1) of the Merchant Shipping Act 1995) or goods that are outside England and Wales at the time of creating the charge. A written instrument containing certain prescribed information is required in order to create the charge.
The Bill also requires a register of goods mortgages to be kept by the Secretary of State in accordance with regulations made by the Treasury or the Secretary of State.
The date for the Bill’s second reading has yet to be announced.