The Personal Property Securities Act 2009 (Cth) ("PPSA") will have a significant impact on the taking, registration and enforcement of security over almost all kinds of property, except land. The PPSA overturns fundamental property law concepts including the long held concept of legal title. A complex set of rules will now govern the enforceability of security interests.
A security interest is an interest in personal property under a transaction which in substance secures payment or performance of obligation, or it may be other interests including commercial consignment and PPS leases. Therefore, from 30 January 2012, if you have any dealings in regard to such arrangements as:
- Fixed and floating charges
- Goods on bailment or hire purchase
- Retention of title claims
- Goods on consignment
- Commercial leases and PPS leases
You should seek advice as to how this legislation will affect you and your business. Further information can also be obtained from the PPSA website www.ppsr.gov.au. Although there is a transition phase for existing securities, any new securities arising after 30 January 2012 must be registered to ensure your priority is not at risk. Some security interests will be automatically migrated to the PPSA Register, and some will require a new registration.
Due to the new terminology introduced with this legislation, we also recommend that you review the terms and conditions of contracts and agreements to ensure that they are PPSA compliant.
If you, or your clients and associates, have any dealings with personal property, they should ensure they are up to speed with the PPSA and its requirements. We can assist with training and education, or refer you to other specialists in the area. For further information, please contact one of our team on 02 9633 3333 and we will be happy to help.