If your transitional security interest (TSI) has not yet been registered on the Personal Property Securities Register (PPSR), you need to register it before midnight on 31 January 2014 (Canberra time) to take advantage of "temporary perfection" and preserve your priority.
A TSI may still be registered on the PPSR after 31 January 2014, however choosing to hold off registering until after that date will result in you losing the benefit of the transitional provisions and your priority will be effective only from the date of actual registration rather than the earlier dates provided for under those transitional provisions.
Registering your TSI after January 31 will mean that another person with a security interest in the same collateral with a higher priority ranking (for example, a secured party who registered during the transitional period) may be paid out ahead of you where a default occurs by the grantor or that you will lose your security interest altogether in an insolvency situation.
Examples of commercial arrangements that may be TSIs not yet registered on the PPSR are:
- leases/hiring agreements (see PPS leases above)
- retention of title supplies
- commercial consignments.
Registration of TSI is free. Please contact us if you need any assistance with your registration or any more information.
Maria Townsend, Sydney +61 2 9391 3059 mtownsend@hunthunt.com.au
Jill Milburn, Sydney +61 2 9391 3142 jmilburn@hunthunt.com.au
Andrew Hudson, Melbourne +61 3 8602 9231 ahudson@hunthunt.com.au
Richard Williams, Melbourne +61 3 8602 9218 rwilliams@hunthunt.com.au
Marc Davies, Adelaide +61 8 8414 3392 mdavies@hunthunt.com.au
Marcus Easthope, Perth +61 3 8602 9213 measthope@culshawmiller.com.au
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.
