The PPSA – making an effort** with some practical issues

Previous posts have looked at various aspects of the Personal Property Securities Act 2009 (PPSA).

Broadly the PPSA applies to most types of property (whether tangible or intangible) other than land.

The rules ignore legal ownership and instead create the concept of 'perfecting a security interest' by way of registering on the online PPSA register (PPSR) to create priority of rights in relation to property.

The range of examples of potential security interests is vast and, for example, include:

1. leases, licences or hire purchase arrangements;
2. loan arrangements;
3. shares and units; and
4. consignment and bailment of goods.

A failure to register an interest on the PPSR will likely result in the loss of property if the party to the transaction who has possession becomes insolvent.

Importantly there are also strict timeframes within which registration on the PPSR must occur in order to ensure priority. Broadly these time limits are as follows -

1. inventory of the entity giving the security interest - registration must occur prior to delivery of possession of the goods;
2. non-inventory goods - registration must occur within 15 business days of the giving of possession of the goods; and
3. in the case of all other goods - registration must occur within 20 business days of the creation of the security interest.

As usual, please make contact if you would like access to any of the content mentioned in this post.

** For the trainspotters, the title of today's post is riffed from the Breeders song ‘Dawn: making an effort’.

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