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Conditions were described as "fairly poor", with it being dark with snow.
He then had to "jump clear to avoid being struck".
The court heard the entertainer braked to avoid hitting the man and lost control of his Mercedes G-Class.
Young's 4x4 was damaged but he "wrote off" the Nissan in the crash, the court heard.
His lawyer said "clearly he made a mistake" in relation to mistaking the bollards - which marked the entry to the lay-by - as the central reservation.
The court heard the singer had been "extremely apologetic" for his "momentary loss of control" and sheltered the man from the cold in his car before calling the police.
Young pleaded guilty in March at Selkirk Sheriff Court to driving without due care as well as at excessive speed for the weather conditions and for entering a lay-by, before appearing at the Jedburgh court for sentencing on Monday.
Sheriff J Euan Edment imposed five penalty points for the incident and banned him from driving for six months.
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