After signalling a possible delay of commencement of the
Personal Property Securities Act ("PPSA") beyond 30
January 2012, the Attorney-General has now confirmed that:
the Registration Commencement Time for the PPSA (the time from
which financing statements can be registered under the PPSA) will
be 30 January 2012, and
the Migration Time (the time from which data from current
registration systems for securities over personal property will be
migrated to the Personal Property Securities Register under the
PPSA) is 21 November 2011.
At the same time, the Senate Committee is still considering a
bill which would allow the Attorney-General to defer commencement
beyond 30 January, if technical issues affected the migration of
existing data and the operation of the new Register. In their
submission, the Attorney-General has said that they are still
working towards 30 January 2012 but would like flexibility to deal
with "the unforeseen".
While some businesses have slowed down their preparation because
of uncertainty as to the start date, we recommend that you
"gear up" for 30 January 2012. As things currently stand,
all "security interests" arising, and "security
agreements" made, on or after 30 January 2012, will be
governed by the PPSA. This also contains transitional provisions
for pre-existing interests.
Parties engaged in financing, taking security, selling or other
dealings with personal property will need to ensure that their
interests gain protection and priority. Agreements and trading
terms must fit the framework of the PPSA, and business processes
must support timely registration.
For more information on how the PPSA applies to your business,
practical steps to prepare for its implementation and how to
prioritise those actions, please contact a member of the
DibbsBarker PPSA Team.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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