From 1 October 2015 leases or bailments of serial numbered goods
for a term of between 90 days and one year soon won't need to
be registered on the Personal Property Securities Register, unless
they are "in substance" security interests that secure
payment or performance of an obligation.
A proclamation (dated 17 September 2015 and registered on 22
September 2015) has now fixed 1 October 2015 as the date for
commencement of Schedule 1, which contains this amendment.
Schedule 1 amends the Personal Property Securities Act by
deleting paragraph (e) of the section 13(1) definition of PPS Lease
(which is about leases or bailments of serial numbered goods that
exceed 90 days, or that can exceed 90 days with renewals and
extensions). It will also make a consequential amendment to section
Get ready for 1 October 2015
For leases and bailments of goods entered into after 1 October
2015, the relevant period to look at is one year or more for all
goods, and serial numbered goods are not dealt with differently.
Leases or bailments of an indefinite term are also still included
in the definition of PPS Lease. The Personal Property Securities
Amendment (Deregulatory Measures) Act 2015 does not affect leases
or bailments entered into before 1 October 2015.
You should have already reviewed your internal processes to
ensure you are registering the leases that need to be registered
and updated your processes in anticipation of the Schedule coming
into effect. If you haven't, you should do so urgently, to
ensure that you no longer register leases unnecessarily on the
Personal Property Securities Register.
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.
Persons listed may not be admitted in all states and
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Do not depart from the contract terms, or encourage the other party to do so, unless you plan to alter the contract.
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