Plant and equipment hire companies have been celebrating
amendments to the Personal Property Securities Act 2009.
These amendments have been welcomed as allowing hire companies to
save on compliance costs where:
- They lease out serial numbered goods (mainly motor vehicles) in
the course of their business; and
- the term of the lease, or, where the lease is renewable, its
aggregate term, is between 90 and 365 days.
On one view, the amendments may, in practice, help hire
companies whose standard practice was to register a separate
Personal Property Security Interest ("PPSI") for each
individual hire, regardless of the circumstances, to save some
money. In such cases, hire companies may instead choose to register
a single "All Present and After Acquired Property"
interest (All PAAP) against all the personal property owned from
time to time by each of their customers. This will basically enable
the hire company to secure each customer's debts against all of
that
