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ARTICLE · 15 MARCH 2016

The need to perfect PPS Leases

Carroll & O'Dea
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Failing to perfect a PPS security interest may be significant when compared to the small cost and time of registration.

AustraliaCorporate/Commercial Law
Selwyn Black
Selwyn Black
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Forge Group Power Pty Limited (in liquidation) (receivers and managers appointed) v General Electric International Inc [2016] NSWSC 52 demonstrates the importance of identifying when a PPS Lease has been created under the Personal Property Securities Act 2009 (Cth) (PPSA), and the need to perfect that security interest.

The Key Facts

  1. Forge Group Power Pty Limited (Forge) entered into a contract with Regional Power Corporation under which Forge was to install four turbines (Turbines) as part of a temporary power station near Port Hedland in Western Australia.
  2. General Electric International Inc (GE) entered into a contract (Lease) with Forge under which GE would rent the Turbines to Forge for two years, with an option to extend, and provide various services to Forge including installation of the Turbines.

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