The PPSR has just celebrated it’s seventh year anniversary. In 2012, some serial number interests were migrated from other state registers to the Personal Property Securities Register and will have expired on 30 January 2019. To learn more about this, please read the PPSR Re-registration article
Not sure if Personal Property Securities Register applies to you…
Here’s a few things to help ascertain whether you should register a PPSR interest:
What the Personal Property Securities Register (PPSR) Act 2009 is
The Personal Property Securities Register Act 2009 is a law about security interests in “personal property”, which is any property (including a licence) other than land and other than certain other rights, entitlements and authorities.
A “security interest” is an interest in personal property that in substance secures payment of a debt or other obligation regardless of the form of the transaction.
This definition covers transactions currently considered a form of security such as mortgages over motor vehicles or charges in company property. It also covers forms of transactions not currently considered as a form of security as a consequence of the form of the transaction.
How it may apply to you:
The business resources section of the PPSR has a multitude of examples on how Personal Property Security may apply to you. Below, we’ve listed two (2) summarised versions of their examples and shown them in a local context:-
Scenario 1: You are an Agricultural Financier in Withcott
You’ve provided capital for crops that have yet to be harvested. The Personal Property Securities Register provides you special priority often referred to as “agricultural personal money security interest” in these situations.
Should your PPSR expire, you may not be able to claim back any capital owed if the grain grower goes bankrupt.
Scenario 2: You are an Automotive Body Painter in Toowoomba
You’ve got terms and conditions that state that you retain title to all goods supplied until all invoices are fully paid. To protect your interests you’ve registered an ex-ambulance that was brought to you to do a full respray into a psychedelic food truck.
Should your PPSR expire, and the food truck company goes into liquidation before your body paint work invoice is paid. The liquidators may sell the vehicle and you won’t be able to claim the paint work from the proceeds of sale.
[These scenarios are generalised and don’t consider other people or business’ security interests. Talk to us, your accountant or financial advisor to find out more]
The Personal Property Securities Registration, is there to protect any personal interest you may have in:
- Designs; and
- Other non-real estate property
To check on your Personal Property Security Registration interest
We recommend completing the following:
- Conduct a Personal Property Securities Expiry Date Report – this is free and can be done here: https://www.ppsr.gov.au/how-get-your-registrations-due-expire-report
- Review each registration and confirm the details are correct. Check:– Grantor details
– Collateral descriptions
– Personal Money Security Interest (PMSI) or Transitional Money Interest
- Extend or Renew any unexpired interest prior to the expiry date and correct any errors that were noticed during your review. The fee to extend/renew is $6.00 per interest (as at 1 Aug 2018) for 7 years. You may be able to apply for an indefinite expiry date for some interests.
Renewing your interests prior to the Personal Property Security Register expiry date will protect you from any adverse effects.
If you have any further questions about PPSR, please contact Leesa in our Commercial team on 4638 1133.
About the author:
Leesa Beresford is a Senior Solicitor in the Commercial, Property and Rural Law areas of Wonderley & Hall. Her expertise covers business & property succession, leasing, financing, franchising and retirement villages. When Leesa is not working at Wonderley and Hall she enjoys pounding laps at the pool, trying out recipes from around the world and going on long walks and other adventures with her teenage son and miniature schnauzer called Chewie.
Wonderley & Hall is a full service law firm based in Toowoomba, serving the Darling Downs, South Burnett and Surat Basin region. We handle Commercial, Family Law, Criminal and other General Litigation matters. If you need help with a legal matter, please call (07) 4638 1133
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