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Scottish Banknotes (Acceptability in United Kingdom) Bill

Scottish Banknotes (Acceptability in United Kingdom) Bill






Make provision about the acceptability of Scottish banknotes throughout the

United Kingdom; and for connected purposes. 

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—


Requirement to accept Scottish banknotes

Subject to section 3, a business must not make any distinction between Scottish

and other banknotes issued in the United Kingdom in terms of acceptability as

payment for goods and services.


Powers of OFT in relation to acceptability of banknotes



A business that fails to comply with section 1 may be reported to the Office of

Fair Trading (OFT) by any person.


Upon receipt of a notification under subsection (1) the OFT may make such

investigations as it considers necessary and may inform a business of its duties

under section 1.



If the OFT is satisfied that a business has breached section 1 persistently, it may

issue that business with a notice requiring it to take action to comply with this



Such action may include requirements to display notices about the

acceptability of banknotes.



For purposes of subsection (3), breaches are to be regarded as “persistent” if

there is evidence of three or more such breaches in any period of twelve



Defence against forgery


Nothing in this Act constrains the right of a business to refuse to accept any


banknote which it considers is, or may be, a forgery.


Bill 16                                                                                                 



Scottish Banknotes (Acceptability in United Kingdom) Bill




If, when exercising its powers under section 2, the OFT is satisfied that the

actions of a business were taken in order to protect itself against forgery, it may

not take action under subsection (3) of that section.


For the purposes of this section, a business must have reasonable grounds to

believe that a banknote is a forgery.



Short title and extent


This Act may be cited as the Scottish Banknotes (Acceptability in United

Kingdom) Act 2009.


This Act extends to England and Wales, Scotland and Northern Ireland.


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Revised 2 March 2009