Did you register a pre-existing security interest when the Personal Property Securities Act came into force in 2002? If you did, that registration will expire automatically without warning from the Registry at the end of its five year term on 1 May 2007 unless you renew it first.
What happens if I don't renew?
If you do not renew your existing financing statement, you may lose the priority that the financing statement gave you. Registering a new financing statement to perfect the security interest again may not help. You will rank behind anyone who has registered a financing statement in respect of the same collateral between the time of your original financing statement and your new one. Renewing your existing financing statement is the only way to ensure your current priority position is maintained.
How to renew
To renew your financing statements you will need:
Your User ID and password.
Your Secured Party Group ID and password.
The financing statement registration number and PIN for each financing statement to be renewed.
Enter the financing statement registration number and PIN and click Continue.
Enter your Secured Party Group ID and password and click Continue.
The current version of the financing statement will be displayed.
Check that the details are correct and then click Renew.
Enter the new expiry date and click Renew Now.
The maximum term for the new registration is five years from the date of renewal (not the original expiry date of the financing statement). If no date is selected, the expiry date will default to five years from the date you renew.
Pay the $5 renewal fee by charging your account with the PPSR (if you have one) - click Charge Account. To pay by credit card, click Pay by Card and follow the instructions.
View the renewal verification statement on screen and/or have it emailed to you (we recommend you keep a copy for your records).
You must supply the debtor with a copy of the renewal verification statement within 15 working days of renewal unless the debtor has waived in writing the right to receive verification statements.
Not sure what to renew?
If you are unsure what the expiry date of a financing statement is, you can find it by:
Checking the hard copy you received on the registration of the original financing statement.
Searching for the expiry date of a specific financing statement on the PPSR website.
Going to www.ppsr.govt.nz. Select PPSR Registration > Financing Statement > View Registered Financing Statement > enter the financing statement registration number > click Continue. The expiry date is at the top of the Financing Statement.
Obtaining a report of the expiry dates of all your financing statements from the PPSR website.
Go to www.ppsr.govt.nz, select PPSR Registration > Miscellaneous Statement > Financing Statement List. Enter your Secured Party Group ID and password and select Logon. The report will list all financing statements of your Secured Party Group due to expire in a specified date range.
Phillips Fox has changed its name to DLA Phillips Fox because the firm entered into an exclusive alliance with DLA Piper, one of the largest legal services organisations in the world. We will retain our offices in every major commercial centre in Australia and New Zealand, with no operational change to your relationship with the firm.
DLA Phillips Fox can now take your business one step further − by connecting you to a global network of legal experience, talent and knowledge.
This publication is intended as a first point of reference and should not be relied on as a substitute for professional advice. Specialist legal advice should always be sought in relation to any particular circumstances and no liability will be accepted for any losses incurred by those relying solely on this publication.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Anyone with standard form contracts who deals with small business must review the contracts for potential unfair terms.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).