New changes to the law in
relation to the Personal Property and Securities Register
("PPS Register") will affect most businesses in
There can be far reaching consequences for businesses which are
affected and do not take steps to understand these changes,
particularly if you do business with someone who becomes
The Basic Guide
On Monday 30 January 2012, the PPS Register replaced most other
security registers in Australia, including but not limited to the
ASIC Company Charge Register and the South Australian Register of
It also enables registration of security interests, generally
speaking, where you take security over someone else's asset
excluding real estate that secured parties have not previously been
able to register.
Security interests capable of registration and numerous and could
include, amongst other things:
- Fixed and floating charges over companies - this includes
intercompany charges for asset protection purposes;
- Leasing/licensing goods - this includes intangible goods like
intellectual property; and
- Selling goods under retention of title or on consignment.
A Practical Summary
All businesses should make sure they understand the following:
- If you hire goods, sell goods or otherwise secure or encumber
other party's goods (or your own goods are in someone else's
possession) and you fail to register your interest on the PPS
Register or register your interest too late, you can lose
those goods to another secured party who has registered their
interest before you, even if you own legal title to the
- For all security interests that are dated before 30 January
2012, but not currently registered, you will have two years
to register them before you lose priority.
Solicitors can advise whether you need to register your
interest on the PPS Register in order to obtain or retain security
in priority of others and we will assist you in the process of
registration if your require. For more information or to get
some help with this, why not have a chat with today's blog writer,
Andersons Partner Felix Hoelscher.
Please note, this Blog is posted in Adelaide, South Australia.
It relates to Australian Federal legislation.