Agenda item

Consider report by Service Director Regulatory Services.  (Copy attached.)  

With reference to paragraph 3 of the Minute of 1 June 2016, there had been circulated copies of a report by the Service Director Regulatory Services on the Discharge and Grant of New Standard Security at 15 Abbey Place, Jedburgh.  The report explained that the purpose of the report was to advise the Jedburgh Common Good (JCG) of the implications of discharging the Jedburgh Community Trust (JCT) standard security relating to 15 Abbey Place, Jedburgh and the granting of a new standard security by the Jed Shed in relation to the loan for 15 Abbey Place.  The report also advised on the possible consequences for the JCG if the Jed Shed ceased trading after transfer of the loan.  The report explained that Jedburgh Common Good had provided a loan to the Jed Shed in 2014 to assist, with the start-up costs of their project.  The project had been very successful and the group had outgrown their premises and were looking to purchase the premises known as 15 Abbey Place, Jedburgh, being the former Band Hall premises which were owned by Jedburgh Community Trist.  There was a standard security over 15 Abbey Place, which was granted in favour of the Scottish Borders Council (SBC) acting as trustees for the JCG by the JCT in 2003 in consideration for the payment by the JCG to the JCT of a loan of £15,000.  It had been suggested that the loan in favour of the JCT could be transferred to the Jed Shed and the JCG required to decide whether it was agreeable to the transfer of the loan.  In order to secure the transferred loan, on the sale of the property, the existing standard security by JCT would be discharged by JCG and a replacement security granted by the Jed Shed.  The Jed Shed had recently established itself as a Scottish Charitable Incorporated Organisation (SCIO).  Concerns had been raised as to what would occur if and when the Jed Shed ceased trading and the report advised that a SCIO could only cease to exist if it was removed from the Scottish Charity Register (the Register), which could only be done if the SCIO was dissolving.  Following discussion, the Sub-Committee thanked the Officers for their work in preparing the report and agreed that in the event of the submission of a formal application from the Jed Shed to the JCG for the transfer of the existing loan in favour of JCT, the Committee would satisfy itself as to the financial standing of the application.      

DECISION

(a)          NOTED the process for discharging and granting standard securities as detailed in the report.

(b)          AGREED that;-

(i)           in the event of the submission of a formal application from the Jed Shed to the JCG for the transfer of the existing loan in favour of JCT, the Committee satisfy itself as to the financial standing of the applicant;

(ii)       if the JCG then approved such application, the JCG  should discharge the existing security over 15 Abbey Place, subject to receipt by JCG of a valid first rank.