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.
The information provided in this article is for general information and educative purposes in summary form on legal topics which is current at the time it is published. The content does not constitute legal advice or recommendations and should not be relied upon as such. Whilst every care has been taken in the preparation of this article, FC Lawyers cannot accept responsibility for any errors, including those caused by negligence, in the material. We make no representations, statements or warranties about the accuracy or completeness of the information and you should not rely on it. You are advised to make your own independent inquiries regarding the accuracy of any information provided on this website. FC Lawyers does not guarantee, and accepts no legal responsibility whatsoever arising from or in connection to the accuracy, reliability, currency, correctness or completeness of any material contained in this article. Links to third party websites or articles does not constitute any endorsement or approval of those sites or the owners of those sites. Nothing in this article should be construed as granting any licence or right for you to use that content. You should consult the third party’s terms and conditions of use in relation to any third-party content. FC Lawyers disclaims all responsibility and all liability (including liability for negligence) for all expenses, losses, damages and costs you might incur as a result of the information being inaccurate or incomplete in any way. Appropriate legal advice should always be obtained in actual situations.
Prefer to get in touch?
With offices in Brisbane, Sunshine Coast and Sydney, our team is well equipped to provide both advice and support across a broad range of legal areas.