I recently delivered a seminar in conjunction with National Australia Bank (“NAB”) in relation to recent developments regarding the Personal Property Securities Register (“PPSR”).
The update was provided in light of recent court cases in this area, as well as the impending expiry of the transitional period on 30 January 2014.
Some of the key points I emphasised to seminar attendees are as follows:
- The introduction of the Personal Property Securities Act 2009 (Cth) (“the Act”) on 30 January 2012 placed a far greater emphasis on “possession” of personal property, irrespective as to “ownership”. Business owners need to be diligent in ensuring they are aware of not only who holds possession of the assets in which they retain title, but also the length of time the assets spend out of their possession and control. This can have significant consequences under the Act.
- Registration on the PPSR is non-negotiable. Recent cases such as Maiden Civil (P&E) Pty Ltd & Ors v Queensland Excavation Services Pty Ltd & Ors  NSWSC 852 have applied the principals of existing New Zealand Case Law to find that a failure to register an interest on the PPSR can have disastrous consequences, particularly in the circumstance of insolvency of the would-be grantor.
- Transitional registrations not perfected on the PPSR before 30 January 2014 will lose their priority status. The next few months present an opportunity for business owners to conduct a “stock take” of the assets they have which are subject to a security interest arrangement. If no current registration exists, registration should be made immediately in order to perfect the interest. If the interest is transitional, registration needs to be made before 30 January 2014 in order to maintain its priority status.
A full copy of my seminar paper is available for download here. Please contact me if you have any questions regarding this post.
Tagged in: 30 January 2014, Caterpillar Excavator Case, Maiden Civil (P&E) Pty Ltd, migrated security interest, perfection, Personal Property Securities Act, Personal Property Securities Register, PPSA, PPSR, Queensland Excavation Services Pty Ltd, security interest, Transitional Period