Mr Rae is known for his Highland dress
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Police have seized a five-foot Claymore sword which has been the trademark of a Borders musician for the past 20 years.
The Claymore was removed from Jesse Rae when he arrived at Selkirk Sheriff Court to fight a civil action.
Mr Rae, 53, from St Boswells, wrote Inside Out for Odyssey, which reached number three in the early 1980s.
He has been charged with being in possession of an offensive weapon. Police said a report was being sent to the procurator fiscal.
The singer, who also wears a steel helmet and kilt, was attending a hearing last week in his long-running sequestration dispute with the Royal Bank of Scotland.
The Claymore, meaning "great sword" in Gaelic, was a mainstay of Highland warriors in the 15th and 16th century.