Pledged Accounts can apply to any lending structure in any sector where the 3rd party takes security in the form of a charge against a named account held with Us, requiring you to request that We waive Our right of set off on the balances and recognise the 3rd party’s claim should you default on your obligations to the 3rd party change holder.
- Instant access to funds: as long as cleared funds are available.
- The accounts will continue to run in line with your existing Current Account product Terms and Conditions and mandate unless we are notified of your default.
- In the event that we are notified of your default, Pledged Accounts have the functionality to allow the 3rd party charge holder to take control of the funds* (subject to Know Your Customer compliance meeting the Bank’s standards).
- 3rd party and Client are able to view Pledged Accounts via Our online digital channel, as long as both parties are set up via client approval.
*Please note, until the point you default, you will have the sole right to amend account level mandate set up and payment approvals as you will remain the Primary Administrator.
Read the Bank of Scotland Pledged Account Factsheet (PDF, 152KB)
Corporate Sterling Account Product & Services Terms and Conditions (PDF, 1.6MB) (Pledged Account)