After a number of delays, the Personal Property Securities
Act 2009 (PPSA) finally commenced operation
on Monday 30 January 2012.
The PPSA represents a substantial reform of the way in which
security interests are created, registered and enforced and will
affect almost all businesses in Australia. These include
individuals, corporations, partnerships and joint ventures which
are involved in any of the following transactions:
financing or lending;,
buying or selling goods on credit or subject to a
"retention of title" arrangement;
creating, registering or discharging charges or other security
leasing or licensing arrangements (except arrangements
involving real property); and
acquiring or selling personal property.
One of the significant reforms introduced by the PPSA is the
establishment of a nation register, the Personal Property
Securities Register (Register), which records
security interests and plays an important part in determining the
"priority" and enforceability of many security interests.
To ensure that your business is properly prepared for the impact of
the PPSA, and that your security interests are properly protected,
you will need to:
review your existing agreements and business practices to
ensure that they reflect the requirements of the PPSA;
conduct a search of the Register to ensure that it accurately
reflects the state of all of your current security interests;
register your security interests on the Register; and
if you are acquiring an asset, search the Register to ensure
that the asset is not subject to any undischarged security
The PPSA is now in effect and we strongly
recommend that you act now to assess your business practices to
ensure that your interests are properly protected. If you would
like further information regarding the PPSA, please do not hesitate
to contact us.
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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