recording and before heritable securities registered  in  the Land Register  on or after the date of  first registration of the interest to which they relate. Section  7(1)  provides  that  the  statutory  ranking  provisions  may  be  overridden  by  either  a  deed  which contains express provisions as to ranking, such as a standard security with a ranking clause or a separate ranking agreement, or any provision as to ranking regulated by statute or rule of law. An example of the latter would be a ‘discount security’ under the Housing (Scotland) Act 1987³⁶  which, in terms of section 72(5) thereof, ranks immediately after any standard security granted in security of a loan for the purchase or improvement of the former local authority house. The Keeper will reflect any properly constituted ranking clause or agreement by means of a footnote to the entry relating to each security in the charges section of the title sheet. For example: Note: The above standard security ranks postponed to [or prior to or pari passu with] the standard security in Entry X. Alternatively,  if  the  ranking  provisions  are  of  a  complex  nature  or  contained  in  a  separate  ranking agreement, the footnote will simply reflect the existence of the ranking. For example: Note: The above standard security contains ranking provisions affecting the standard security in Entry X. Where the subjects over which a standard security is being granted are burdened by another heritable security which, because of its earlier date of recording or registration, will rank prior to that standard security, Note 5 to Schedule 2 of the Conveyancing and Feudal Reform (Scotland) Act 1970 provides that there should have been inserted before the warrandice clause in the deed, the following clause: ‘But the security hereby granted is subject to [the prior security deed]’ The warrandice clause will, in turn, be amended to reflect the presence of such a clause. The Keeper takes the view that such a qualification to warrandice is no more than a warning to the creditor in the new standard security that a prior security exists. It is not regarded as affecting the ranking of the securities. Consequently if two standard securities are received on the same date, one of which contains a ‘subject to’ clause, they will be treated as ranking pari passu. The Keeper’s view is based on his reading of Note 5 to Schedule 2 which distinguishes between the situation where a standard security is described as being ‘subject to’ another heritable security, and the situation where a ranking clause is required. Whilst there is no case law directly in point, support for the Keeper’s stand can be found at paragraph 57-30 of J. M. Halliday’s Conveyancing Law and Practice in Scotland³⁷ (2nd edition, Greens 1997). Standard securities by limited companies 6.75 See paragraphs 5.47 et seq. for a comprehensive discussion of this topic. Standard security over standard security 6.76  This  is  an  extremely  rare  occurrence  and  solicitors  intending  to  register  such  a  deed  should contact the Pre-registration Enquiries Section to discuss the application.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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