Melbourne, (January 2012) – After a few false starts, the Personal Property Securities Register (PPS Register) established under the Personal Property Securities Act 2009 (Cth) (PPSA) commenced operation today.
The PPSA radically expands the scope of interests that businesses must now register on the PPS Register to avoid the risk of loss of priority or invalidity if the entity granting the interest becomes insolvent. The PPS Register replaces the ASIC Register of Charges and more than 70 Acts and registers around Australia with a single national law and central online register that is available to the public 24/7.
The PPSA does not apply to real property and certain statutory licences. However, the term ‘personal property’ now stretches to most other kinds of tangible and intangible property, including motor vehicles; household, commercial and industrial goods and equipment; business inventory; intellectual property rights and company shares.
Under the new system, ‘security interests’ now include contractual arrangements that were not previously regarded as security, including leases, supply on retention of title terms, hire purchase arrangements, flawed asset arrangements and various other common commercial relationships.
Suppliers, manufacturers, lenders, creditors and lessors will need to ensure that new security interests in personal property are registered on the PPS Register as soon as they are created.
Existing security interests will benefit from a 2 year grace period under the new regime. However, if any existing registrable security interest is not accurately migrated or registered on the PPS Register within this period, the interest may also be lost. Lenders are likely to require commercial clients to take immediate steps towards protecting their businesses under the PPSA. Companies that fail to do so could be in default under their financing arrangements.
Identifying the extent of your PPSA risk, implementing the relevant procedures and systems within your operations and building a PPSA-compliant corporate culture takes time. TressCox Lawyers can reduce the burden of the PPSA on your operations. Contact us immediately to discuss how the PPSA will affect your business.
For further information, contact:
Andrea Wookey
Partner, Banking & Financial Services
Phone: 61 3 9602 9709
Andrea_Wookey@tresscox.com.au
TressCox Lawyers is a highly successful, specialised law firm focused on providing professional legal services to the public and private sectors. In Australia, TressCox has a very strong presence, currently operating from offices in Sydney, Melbourne and Brisbane. The Firm has established itself as a leader in the Australian market in the areas of corporate and commercial law, litigation and dispute resolution, insurance, financial services, health, government, media and entertainment, building and construction, energy and resources, infrastructure and intellectual property.
For further information about our other services, please contact:
Sarah Hargrove
Director of Business & Practice Development and People
Phone 61 2 9228 9233
Fax 61 2 9228 9299
Sarah_Hargrove@tresscox.com.au
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