At last – The Personal Property Securities Register goes live

The Personal Property Securities register commenced 30 January 2012.

Federally, security interests which were previously registered on the following registers were migrated to the national PPS Register:

  • ASIC – Register of company charges (including provisional charges)
  • Australian Register of Ships (mortgages only)
  • Fisheries Register.

For Victoria, security interests were migrated across from:

  • Vehicle Securities Register
  • Register of Liens on Wool and Stock Mortgages (stock mortgages only)
  • Register of Co-operative Charges.

Security interests on registers which have not been migrated may be registered on the PPSR over the next 24 months. However note this well: the earlier this is done, the earlier the holder of the security interest will gain priority against other creditors.

“Security interests” which have not previously been registrable – or indeed have not traditionally been thought of as “security interests” at all – may now also be registered on the PPSR. These include ROT clauses – now deemed security interests (PMSIs, in fact) – or equipment leases for a term exceeding 12 months (or 3 months for motor vehicles, boats or aircraft). Indeed, these must be so registered, to attain priority against other creditors, including the “super-priority” accorded PMSIs, or Purchase Money Security Interests.

Useful summary information about the new system of registration of personal property security interests can be found on the PPSR website here.

Update re Personal Property Securities Register

The Attorney-General’s department has recently released the November 2011 update which can be read by following the link on the PPSR website here.

Note that at this stage, the planned commencement date for the PPSR is 30 January 2012. There are some serious pitfalls for business and companies not across how the PPSR will operate and the effect it will have on  traditional notions of ownership and property interests, as we know them. Over the coming months, I will be posting case studies from New Zealand, to highlight the kinds of issues and problems that trading companies and their lawyers ought to be alive to, to safeguard their business interests and practices.