WELCOME CHANGES TO THE PPSA COMMENCE TOMORROW
Up until now, leases or bailments of certain serial numbered
goods (such as motor vehicles) for a term of 90 days or more were
deemed to give rise to security interests under the Personal
Property Securities Act 2009 (Cth)
("Act"), and therefore had to be
registered on the Personal Property Securities Register
("PPSR") to protect the lessor's
interest in the event of the lessee's bankruptcy or insolvency
and as against bona fide transferees for value.
From 1 October 2015, this 90 day requirement will be removed,
with the effect that a lease or bailment of serial numbered goods
for a term or 1 year of less will no longer give rise to a security
interest under the Act.
