Personal Property Securities Act (PPSA) Overview

Introduction

• Recent changes due to the Personal Property Securities Act in Australia.
• Establishes a new central law and register known as the Personal Property Securities Register (PPSR).
• Affects how security interests are recorded and enforced.

Purpose of the PPSR

• Acts as a public notice board for recording and viewing security interests.
• Applicable to individuals, companies, trusts, partnerships, and corporations.
• Registration is crucial for preserving rights to property.

Implications of Not Registering

• Title or ownership alone is no longer sufficient to maintain rights.
• Failure to register security interests can lead to loss of property rights.

Scope of the PPSA

• Encompasses all property types except:
  • Land
  • Buildings
  • Fixtures on land
  • Certain water rights
• Includes:
  • Leases
  • Goods under retention of title
  • Commercial consignment
  • Bailment
  • Equipment hire

Registration Process

• Perfects the security interest.
• Charges may apply for searching the register.

Impact on Businesses

• Businesses must register their security interests to enforce rights, especially in the event of insolvency.
• NAB and other banks may register security interests related to business transactions.

Specific Rules

• Hiring serial numbered goods for 90 days or longer requires registration.
• Ensures protection if the customer becomes insolvent.

Responsibilities for Businesses

• Register interests on goods supplied under retention of title or leased.
• Keep registrations current to avoid losing interests.

NAB's Role

• Sends notices of registered security interests.
• Requires businesses to demonstrate registration practices.

Recommendations

• Implement business processes to manage and protect interests.
• Seek legal advice regarding PPSA's application to your business.
• Prepare to provide verification statements to banks if needed.

Additional Resources

• Visit the official PPSR website for further information: www.ppsr.gov.au