PPS Update

Commencement of the Personal Property Security Register has been postponed until late October. Find and claim is now available.

For those who came in late

The Personal Property Securities (PPS) reform scheduled to commence in October 2011 completely replaces the existing schemes for registering security over most types of assets except real estate. For example, charges over companies will no longer be registered at ASIC and security over motor vehicles will no longer be registered at REVS.

Instead, these security interests will be registered on the PPS Register.

In addition, security interests which were not previously registrable can be registered in the PPS Register. This is particularly important in relation to owner's rights under equipment leases, hire purchase agreements, and retention of title arrangements.

Find and claim

Gadens Lawyers is one of the few law firms with access to the PPS Register's pre-registration commencement time (Pre-RCT) find and claim procedure. This enables Gadens to:

• establish Secured Party Groups (SPGs) for financiers;
• obtain a list of securities which have been migrated to the PPS Register and allocate them to the financier's SPG.

Participation in Pre-RCT 'find and claim' is not essential (although most large financiers will participate). The key advantage of participating is to gather all your security interests into a single Secured Party Group (SPG). Businesses who regularly lease equipment or take charges will want to create an SPG to facilitate dealing with their registrations.

Participation in Pre-RCT 'find and claim also provides:

• early ability to review migrated fixed and floating charges and to consider whether it is appropriate to lodge an additional financing statement in relation to (for example) serial numbered goods;
• create a single point of reference for all your securities.

If you would like Gadens to undertake to establish an SPG and conduct a find and claim on your behalf, please contact Umniyat Choudhury on 9931 4952. We can also develop a transition plan for your business and provide amended documents customised to operate in the PPS world.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.