We are starting to see an increasing trend in new registrations and searches being carried out on the Personal Property Securities Register (PPSR). This is an encouraging sign as we hit the 2 year mark since the implementation of the Personal Property Securities Act (PPSA) on 30 January 2012.
The PPSA was introduced to streamline how we deal with and record security interests in personal property other than land. The PPSR brought together 23 separate registers to create one national public register of securities.
Recent PPSR statistics show that over the last 12 months there has been a steady increase in the number of searches being carried out on the PPSR. In the December 2014 quarter we saw 522,682 new registration listed on the PPSR and 1,004,883 registrations amended.
Interestingly in the December 2014 quarter there were only 345,216 registrations which were discharged or removed from the PPSR. Many registrations cover long-standing commercial relationships, so one would expect they would remain current on the register for a number of years. However, one further explanation for this is that many registrations are not properly removed after the security interest has fallen away, or the associated obligation or payment has been fulfilled. When searching the register you should consider whether the registrations shown are current or obsolete.
There are a number of situations where you are required to register your security interest on the PPSR in order to protect your interests. For example, supply of goods on a retention of title basis, leasing arrangements, equipment hire and loan agreements.
If you would like legal advice on your rights and obligations under the PPSA or information on how to protect your security interests please contact us.
Jeffrey Brown – [email protected] or 9635 7966
Laura Willis – [email protected] or 9635 7966