On 31 January 2014, the temporary perfection grace period for transitional security interests ("TSI") provided under the Personal Property Securities Act will end.
What this means is that if you have not registered your arrangements with your customers, joint venture partners or even intercompany arrangements by this date it will be too late. Also, don't rely on registrations that have been brought across from other registers such as ASIC or REVS. There were lots of errors in the migration process and if you have not reviewed your registrations and rectified any errors by the end of the transitional period you may lose your rights.
Failure to register has already cost a company dearly in one of Australia's first PPSA cases where they lost all their rights in relation to valuable earth moving gear that they owned.
There is also another incentive to register now. Registering transitional interests is free. After 31 January 2014 registration of your arrangements will cost up to $140 per transaction.
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.
