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| Image Credit: Images Money cc via Flickr |
A post from February 2012 considered the Personal Property Securities Act 2009 (Cth) (PPSA) which commenced some 18 months ago.
Today’s post focuses on one of the upcoming critical aspects of the regime.
The PPSA is the national system for personal property securities in Australia and replaced many state, territory and Commonwealth registers of personal property securities.
Central to this system is the Personal Property Securities Register (PPSR) where details of security interests in personal property can be registered and searched.
To give creditors an opportunity to adjust to the new regime, the PPSA included transitional provisions. The principal object of these provisions was to maintain priority between security interests that existed before the PPSA commenced on 30 January 2012 for two years. These interests are known as ‘transitional security interests’.
This two year transitional period ends on 30 January 2014.
To ensure transitional security interests continue to be protected they should be reviewed to ensure they are validly registered on the PPSR by 30 January 2014. There is no PPSR fee to register a transitional security interest.
Until next week.