Personal Property Alert from Nyst Lawyers

PPS Register to Commence 30 January 2011

The Federal Attorney General’s office has confirmed that the government is still on track for the new Personal Property Securities Act (‘PPSA’) and PPS Register to be operational from 30 January 2012.

The PPSA replaces over 70 State and Territorial Acts and 40 different registries aimed to streamline the management of registration of security interests. The PPSA will apply to all security interests in tangible and intangible personal property other than real estate.

The PPSA defines a security interest as being an interest in personal property provided for by a transaction that, in substance, secures payment or performance of an obligation (without regard to the form of the transaction or the identity of the person who has title to the property).

From 30 January 2012 there will be a requirement to register security interests against company assets on the PPS Register.

The PPS Register will assist business owners to manage credit risk, enabling the ability to check whether property planned for purchase is encumbered and register assets for the purpose of securing loans.

PPS reform has the potential to affect you and your business in a number of various ways and the Federal Attorney General’s website recommends seeking professional advice in relation to specific issues affecting your business.

Generally business owners and consumers who may be affected by changes by the PPS reforms may include:

purchasers of property which may be subject to a security interest;
business or consumer borrowers;
providers of credit and lending institutions;
creditors;
equipment Lessors;
consigners and other retention of title suppliers;
purchasers of accounts receivable;
insolvency practitioners; and
investors who are contemplating buying into a business.

It is imperative that any person who currently holds or seeks to claim an interest in personal property ensures that they register their interest on the PPS from 30 January 2012. Those who do not register their security interest may not be afforded the protection contemplated by the PPSA and could lose ranking over other parties who may also claim an interest in that property.

Please contact Nyst Lawyers to make an appointment in order to ensure that any interest you claim over personal property is secured.

For further information about the PPSA reforms or if you wish to register a security interest, please contact Mia Kershaw of Nyst Lawyers on (07) 5509 2400 or mailus@nystlawyers.com.au.

Nyst Lawyers