Do your commercial dealings involve:
- Hire purchase agreements?
- Equipment leases?
- Conditional sale contracts?
- Retention of title arrangements?
- Chattel mortgages?
For many businesses, security interests such as those listed above lie at the heart of contractual relations with suppliers, customers and end-users.
As of 30 January 2012, Australia's new centralised personal property securities register commenced operation.
Although there is a transitional period for security interests in existence prior to 30 January 2012, there is no such temporary protection for security interests arising after implementation. With the new regime now operational, we urge businesses to immediately audit their internal practices and commercial documents to ensure preservation of their security interests.
One particular fundamental change that will have widespread impact on commercial transactions is the shift away from a system of title to one of registration for retention of title arrangements.
It will therefore be essential that your internal processes are updated in order to ensure your compliance with both the legislation and the registration process.
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.