Changes to PPS leases of goods

The definition of PPS Lease under the Personal Property Securities Act 2009 (Cth) (PPSA) was amended with effect on 20 May 2017. This change will have a particular impact on the need to register commercial leases of goods on the Personal Property Securities Register (PPSR).

Outline of PPS Leases

1. A PPS Lease includes a lease of goods that meet certain criteria under the PPSA.
2. A PPS Lease is a security interest.
3. Lessors can lose their interest in a PPS Lease if they fail to perfect their security interest.
4. The most common way of perfecting a security interest is to register that interest on the PPSR.
5. A costly example of the failure to register a PPS Lease is analysed in our earlier article found here.