In 2012 the Personal Property Security Act 2009 (“the PPSA”) came into effect. At the time the ‘Personal Property Securities Register (“the PPSR”) was switched on for the first time to become the national ‘one stop shop’ for managing securities over personal property.
What is the PPSR?
Have you ever checked the ‘Vehicles Securities Register” before purchasing a car to make sure the car won’t be repossessed by a third party? Well the PPSA has brought together over 23 separate registers (such as the Vehicles and Securities Register) to create one national public register of securities. This means that a broad range of property, tangible and intangible, can be found in the one place on a single register. Tangible property that is captured on the register includes things such as equipment, motor vehicles, crops, livestock, wool, aircraft, boats, minerals and even satellites and other space objects. Intangible property captured by the PPSA includes intellectual property, bank accounts and other financial instruments.
Furthermore the PPSA also introduced a lot of new rules about how a person must go about creating an ‘interest’ in property to make it legally enforceable. If an interest is not properly created, then in some circumstances the interest will not be enforceable against the person that holds the property or any third parties that might be owed money by the property holder.
Recently ppsr.gov.au released a PPSR document which outlines all you need to know about the register, including who it is applicable for what can be protected, how to use the register and also further technical information. This tool contains valuable information for businesses seeking to better understand the PPSR and provides clear steps for how to use it. We would like to share it with you in the attached pdf.
For further practical tips for business when dealing with suppliers and customers in regards to the PPSA then please refer to our past Blog here.
When should I get specific advice about the PPSA?
You should seek specific advice about how the PPSA may affect you or your business when you:
- Are selling or purchasing a business
- Are applying for or have obtained finance
- Are considering or are bringing in new investors, partners, or directors to your business
- Are entering into any ongoing supply contracts as either supplier or customer
- Are thinking about providing finance to your customers or any other third party
- Are entering into any arrangement whereby you provide goods to a customer that are of high value to your
- business, and the customer will not pay for the goods in full before taking possession of some or all of them
- Get notice that any of your major customers or suppliers may go bankrupt, into liquidation, have a receiver
- appointed, go into voluntary administration or are suffering any other form of financial distress
- Are unsure, at any time, about the rights, risks and benefits under the PPSA to your business.
If you do require advice regarding the PPSR then please do not hesitate to contact us.
For further information, please contact the author.
This article is posted in Adelaide, South Australia by Tri-meridian Corporate & Commercial Law and is intended to be used as a guide only. It is not, and is not intended to be, advice on any specific matter. We do not accept responsibility for any acts or omissions resulting from reliance upon the content of this article. Before acting on the basis of any material in this article, we recommend that you consult your professional adviser.