The Personal Property Securities Act 2009 (PPSA) came into effect on 30 January 2012 and has 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.
This ground-breaking legislation creates new concepts and discards accepted principles that have formed the basis of commerce for many years. It directly impacts those who are manufacturers, producers, suppliers, purchasers and users of goods and services.
Because the PPSA applies to most security interests in personal property, even businesses that have never had to register security interests before now need to take care to protect their rights.
In addition, anyone who has been granted a security interest or has entered into any form of arrangement that may be regulated by the PPSA will need to review their documents and consider what steps they need to take.
How does the PPSA affect you?
To protect your own interests and undertake searches of parties you deal with, it's important that you are aware of the new system for registering security interests caught by the PPSA using the PPS Register.
HopgoodGanim's experienced Banking and Finance team understands how the PPSA affects businesses in various industries, and can provide tailored advice on how to protect your interests through the PPS Register.
Our advice includes:
- Answering specific queries or providing information on how the PPSA may impact directly and specifically on your particular business.
- Working with you to assess the risks of not taking steps to "perfect" any security interests which you may hold (either from past transactions or moving forward). While there is a transitional period for transactions which pre-date the commencement of the PPSA, there are still situations where you would be advised to "perfect" those past interests when the PPS Register "goes live".
- Reviewing existing contracts to identify those "security interests" which could or should be registered on the PPS Register.
- Checking your existing documentation to be used for future transactions to ensure that you will have the best protection possible under the PPSA, depending on the types of transactions which you are likely to enter into.
- Undertaking a risk assessment and cost/benefit analysis to determine the extent to which you will need to comply with, and take the benefit of, the PPSA moving forward. This will depend on a number of factors, including the number of transactions you expect to undertake in which the PPSA may apply, the value of the property which may be affected by those transactions, and the period of time over which the transactions (or a series of transactions with the same customer) are likely to last.
- Assisting you with an understanding of the obligations you have under the PPSA and providing a tailor-made manual and checklist to help you manage transactions and documents affected by the PPSA, if you choose to do that in-house (including the steps to register interests held by you, or search for interests registered against others with whom you deal, on the PPS Register).
Further information
For more information about how the PPSA affects your business, please read our previous Alerts or download our free industry-based PPSA factsheets below.
For tailored PPSA advice to help you manage risk and protect your business interests, please contact HopgoodGanim's Banking and Finance team.
Publications
PPSA Alert: Transitional provisions under the PPSA - 2 Apr 2012
As the Personal Property Securities Act has commenced operation, any person or business that has been granted an interest that constitutes a security interest under the PPSA will need to take action immediately to ensure that their interest is protected.
Banking and Finance Alert: PPSA to commence on 30 January 2012
The Attorney-General has formally determined that the PPSA will come into effect on 30 January 2012. It is essential that those businesses that may be affected by the operation of the PPSA are aware of what they need to do to protect themselves.
Banking and Finance Alert: The Personal Property Securities (Registration Commencement) Bill 2011: Changes to the commencement of the PPSA - 13 Oct 2011
The Personal Property Securities (Registration Commencement) Bill 2011 was introduced by the Commonwealth Government on 12 October 2011. Partner Paul Cullen outlines the key changes the Bill introduces to the Personal Property Securities Act 2009 (PPSA).
Banking and Finance Alert: Commencement of PPSA securities regime postponed again - 6 Sep 2011
The commencement of the securities regime established by the Personal Properties Securities Act 2009 (PPSA) is to be postponed again.
Finance Alert: How the Personal Property Securities Act 2009 affects retention of title arrangements - 25 Mar 2011
This article discusses how the registration and enforceability of retention of title arrangements will change under the Personal Property Securities Act 2009, and what businesses should be doing now to ensure their interests are protected.
HG Alert: Commencement of Personal Properties Securities Act 2009 postponed - 16 Feb 2011
The Council of Australian Governments has announced that the commencement of the securities regime established by the Personal Properties Securities Act 2009 will be delayed until October 2011.
HG Alert: How the Personal Property Securities Act will affect Australian businesses - 28 Jan 2011
The Personal Property Securities Act 2009 will have a wide-ranging impact on Australian businesses. Even businesses that have never had to register security interests before will now need to take care to protect their rights.
