The Personal Property Securities Act 2009 (“PPSA”) which came into effect on 30 January 2012 has revolutionised the law relating to personal property in Australia by (amongst other matters) introducing a new system for persons to register security interests in personal property on the PPS Register (“PPSR”).
The PPSR replaced a whole range of State‑based registers and different types of security interests which existed previously. The PPSA allows registration of security interests in many situations which previously would have been surprising. Security interests can arise through persons signing a standard terms of the trade with a supplier or entering into a lease agreement for plant and equipment.
The provisions of the PPSA and procedures for registration can be complex and should not be left to chance or ignored. In many transactions you will need to search the PPSR to find whether there is a registered charge over any assets you are buying or acquiring some other interest in and if you fail to, then the registered charge will take precedence.
Whether you want to register a charge or check to see if something is subject to a charge you should contact our finance law team for advice and not leave things to chance.
If you are considering the application of the PPSA to your business please call our PPSA specialists today.