Introduction
It is now more than 18 months since the Personal Property
Securities Act 2001 (Cth) (PPSA), which
regulates "security interests" in personal property, came
into force.
While many involved in the construction industry by now have an
awareness of the PPSA, most are still coming to grips with
precisely what the PPSA means for them. In this article we identify
the top 5 issues under the PPSA which can catch principals and
contractors out.
- Take-out rights under a contract
One of the biggest issues for principals and contractors is
being able to recognise when a security interest under the PPSA
arises. Traditional forms of security, such as charges and
mortgages over personal property, are easily recognised as creating
security interests for the purpose of the PPSA and cause little
difficulty. It is when the PPSA extends to cover interests in
personal property which have not traditionally been thought of as
forms of security that principals and
