Standard security arrangement queries: FOI release

Information requested

Information regarding standard security arrangements by Scottish Ministers and James Callander and Son ltd (SCO 24779).

• Documentation on floating charge contained in charge SC02 4779 0019 created 28 April 2016 and registered companies house 18 May 2016. What was the Scottish Ministers involvement with this private company, why was there a need to create such a floating charge and alteration on 5 January 2018 and financial amount involved and accruable interest.
• Documentation on Standard Security and charge SC 02 4779 0020 created 4th July 2016 and registered 6th July 2016 security granted over Abbotshaugh Sawmill, Abbots Road, Falkirk FK2 7X0. Reasons for the standard security taken over a private business premises, amount of lending to require the standard security and accruable interest.
• What the relationship of the above securities play in the purchase of land from the Scottish Ministers by James Callander and Son ltd and contained in title FFE97279 registered 10 Nov 2010 and the subsequent Section 75 agreement dated 5 July 2010 and requirement of £500k “Bond Payment.
• Recoveries of monies, documentation showing that the use of public monies for the above securities have been satisfied in full including accrued interest.

Response

I have attached a number of related to your request i.e.

• Devilla Standard Security document;
• Minute of Agreement document;
• Devilla Deed of Real Burdens and;
• Disposition in favour of James Callender and Sons.

Please note that these documents have been redacted to remove data relating to Forestry Commission staff and Third party staff in accordance with Data Protection legislation.

Please find below answers to your specific questions:

Information regarding standard security arrangements by Scottish ministers and James Callander and Son ltd (SCO 24779).

• Documentation on floating charge contained in charge SC02 4779 0019 created 28 April 2016 and registered companies house 18 May 2016. What was the Scottish Ministers involvement with this private company, why was there a need to create such a floating charge and alteration on 5 January 2018 and financial amount involved and accruable interest.

Ans : As part of the agreement to dispose of the site for the creation of a sawmill in 2010 it was agreed that the company would enter into a 25 year commitment to pay £5,000 per annum for community benefit the remainder of Devilla Forest. Copy of documentation attached. In addition it should be noted that this amount is subject to a 5 yearly rental uplift in rent linked to RPI and I can confirm that this has been actioned, invoiced and paid. In 2016 the structure of the company was altered and the land was transferred into the individual ownership of Mr G Callander. As a result it was necessary to redraft the Standard Security and replicate the obligation to pay the amount to the individual.

• Documentation on Standard Security and charge SC 02 4779 0020 created 4th July 2016 and registered 6th July 2016 security granted over Abbotshaugh Sawmill, Abbots Road, Falkirk FK2 7X0. Reasons for the standard security taken over a private business premises, amount of lending to require the standard security and accruable interest.

Ans : As above it was to replicate the original documents given the change in ownership.

• What the relationship of the above securities play in the purchase of land from the Scottish Ministers by James Callander and Son ltd and contained in title FFE97279 registered 10 Nov 2010 and the subsequent Section 75 agreement dated 5 July 2010 and requirement of £500k “Bond Payment.

Ans: The sale of the land was put in place at the same time as the planning consent and S75 agreement. The security covers the amount to apply to the wider Devilla Forest to benefit public use which was detailed in the s75 Agreement under (c) measures to enhance the public enjoyment of the countryside at and adjacent to the site are implemented. It should be noted that Scottish Ministers, acting through Forestry and Land Scotland were never involved in the bond payment which was to be made directly to Fife Council.

• Recoveries of monies, documentation showing that the use of public monies for the above securities have been satisfied in full including accrued interest.

Ans: I can confirm as mentioned above that all payments have been made including interest and that this will continue to be monitored till the end of the agreement in 2035. This money is used towards our expenditure in Devilla Forest for the creation and maintenance of paths, car parks, signage etc.

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FOI 202500451884 - Information Released - Annex

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