Personal Property Securities
The Personal Property Securities Act, 2009 (Cth) ("PPSA") which commenced operation on 30 January 2012, has significantly altered the law governing a security interest in respect of personal property.
Personal property means any form of tangible and intangible property (including licenses and trade marks) other than freehold or leasehold interests in land, fixtures, water rights, minerals and other statutory rights.
The PPSA is concerned with the priority of security interests in personal property between competing security holders. There is now a "unitary" concept of a security interest which includes most traditional forms of security such as mortgage, charge, pledge, lien etc. The PPSA is not concerned with the form of the security but rather the substance of the transaction.
A central feature of the PPSA is the Personal Property Securities Register ("PPSR"). Security interests are commonly 'perfected' by registration on the PPSR. Failure to register, may result in the secured party losing its priority against other parties who claim an interest in the same property.
Hugh & Associates has extensive experience in transactions involving the PPSA. We prepare security agreements including ALLPAP (general security agreements), security interests in specific property as well as PMSI (purchase money security interests). Security agreements can take many forms including trading terms, which can be tailored to meet the particular circumstances. We lodge and discharge security interest (including large volumes), advise in relation to enforcement rights, registered security interests and provide a PPS monitoring service for clients.
The firm's clients utilising PPS services include large retailers, manufacturers and wholesale and retail distributors.
Contact: Robert Hugh