There is an urgent need for businesses to review and revise their terms of trade.
The Personal Property Securities Act 2009 (PPSA) establishes a single national law governing security interests and similar transactions with respect to all tangible and intangible assets (including intellectual property).
It does not include land and some statutory licences.
The PPSA creates a single register where all forms of security interests in respect of ‘personal property’ must be registered. The Personal Property Securities Register (Register) is a national online register, which secured parties, and potential secured parties can search for and register security interests over personal property.
The PPSA will have a wide-ranging impact on Australian businesses. The legislation not only affects financiers but also anyone that has entered into, or will in the future enter into, any arrangement constituting a security interest under the PPSA.
For security interests that are already in place when PPSA starts to operate, a transitional protection period of 24 months applies during which these ‘transitional security interests’ are deemed perfected.
However, if these interests are not actually perfected within the 24 months, they become unperfected.
Who does the PPSA affect? Security interests will include:
The PPSA registration regime specifically excludes:
Interests in land and water rights continue to be registered at the various State land title offices and water authority registers.
For further information:
telephone: +61 3 9629 5551