The PPSA is currently subject to a review process following a
call for submissions by the Attorney General in April 2014. In an
interim report dated 31 July 2014 prepared as part of the review
process, it was proposed that a series of consultation papers be
prepared to discuss potential areas for reform of the PPSA based on
the submissions received from interested parties.
First Consultation Paper
The purpose of this consultation paper is to consider the reach
of the PPSA by looking at the types of legal relationships to which
the PPSA should apply, the types of property to which the PPSA
should apply and what exemptions might be desirable. Some examples
of issues covered by the paper are:
the definition of "security interest" and whether it
requires a proprietary interest in personal property;
whether and to what extent leases of personal property should
give rise to security interests under the PPSA;
the definition of "account" and whether outright
legal transfers of accounts should give rise to security interests;
the concept of "chattel paper", the history of its
inclusion in the PPSA, and whether the concept should be retained
or completely removed.
Interested parties are called to comment on the specific
proposals made in the first consultation paper by no later than 3
November 2014. A template to use when providing comments is
available from the
Attorney General's PPSA review webpage.
Three further consultation papers are scheduled for release in
October 2014. The additional papers will cover:
the creation and perfection of security interests, dealings in
collateral, priority and the take free rules;
enforcement of security interests, particular types of
collateral, interaction with other legislation and miscellaneous
the PPS register.
A final report in relation to the review of the PPSA, with
recommendations on how to improve the Act, will be published at the
end of January 2015.
Clayton Utz communications are intended to provide
commentary and general information. They should not be relied upon
as legal advice. Formal legal advice should be sought in particular
transactions or on matters of interest arising from this bulletin.
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