It is crucial that people who have an interest in personal property security take it seriously or risk losing their security interests.Many companies are struggling to understand the implications of the Personal Property Registry (PPSR). This article provides a simple summary and a timely notice of what to do, following the changes that were implemented in the PPS Act in 2014.
The PPSR explained
The PPSR search is a national and electronic register of collateral on personal assets set up on January 30, 2012.It includes security interests in property, vehicles, intellectual property and any other personal property, but does not apply to land.
A “guarantee interest” includes any interest in personal property that is created through an agreement that guarantees payment or fulfillment of an obligation with another person (for example, a fixed and variable cost on a good).
Тhе РРЅR іs thе оnlу rесоrd thаt dеtеrmіnеs whеthеr а sесurіtу іntеrеst:
- is applicable; and
- It has priority over other interests.
Who is most likely to be hit?
This is especially relevant to anyone who is engaged in the business of:
- Leasing and rental equipment;
- Provision of goods based on the preservation of the title;
- Mortgage equipment; is
- Make a debit on the ownership of individuals or companies as a guarantee for loan repayments.
Note: Changes to the PPS Act commencing on 1 October 2015 indicate that companies that frequently use 90- to 1-year lease contracts with serial numbers such as cars, aircraft, ships, and other items they may no longer need to register those contracts once the amendment comes into force.
How to do a search in PPSR
Certain security interests before January 30, 2012 were transferred to PPSR check (for example, charges filed in the ASIC Register of Company Costs), while others may not have them.Even when tariffs have been “successfully” transferred to PPSR, problems have arisen during the migration process, which means that there is no guarantee that all migrated tariffs will be correctly recorded in the PPSR. Therefore, it is essential to perform a check.
To ensure that you are protected, it is important that you search for PPSR, but before you can search the online log you must create an account. Once you have an account and pay a small fee, you can search by serial number, person or company to find a security interest.
Fаіlurе tо rеgіstеr іntеrеsts оn thе РРЅR mау rеsult іn thе рrіоrіtу оf уоur іntеrеsts bеіng lоst tо оthеr раrtіеs wіth соmреtіng іntеrеsts