If your terms of trade documents don’t have the correct provisions, you can lose goods supplied to a customer that becomes insolvent, even though you may have title to the goods.
The Personal Property Securities Amendment (Deregulatory Measures) Bill 2014 proposes to amend the definition of ‘PPS Lease’ in the Personal Property Securities Act 2009 (PPSA) so that leases of serial numbered personal property for less than one year will not create a PPS Lease security interest.
A transitional security interest is an arrangement or transaction that commenced prior to 30 January 2012 and, if it had commenced after 30 January 2012, it would have created a security interest under the PPSA.
Key protections under the Personal Property Securities Act (PPSA) come to an end on 30 January 2014. Businesses that have been relying on the transitional rules to protect existing credit, hire or lease arrangements need to take action now or risk automatically losing their rights in their property or position as a secured creditor.
Key provisions that currently protect some unregistered security interests will come to an end on 30 January 2014
Businesses and individuals must identify and register their security interests on the PPS Register to avoid losing assets to customers’ secured creditors.
Key provisions that currently protect some unregistered security interests will come to an end on 30 January 2014.
All entities risk losing assets to third party creditors under the Personal Properties Securities Act unless they take steps to protect their title through appropriate documents and action (typically registration on the PPSR).
The PPSA (Personal Property Securities Act) will celebrate its first birthday on 30 January 2013.
Businesses that supply goods to other entities should revisit their policies about registration on the Personal Properties Securities Register (PPSR) or risk losing their claims to goods if their customers become insolvent.
A recent decision of the Federal Court highlights the need for creditors to actively enforce their security interests.
The new Personal Property Security Act (PPSA) started on 30 January 2012.