At DibbsBarker, we understand that the impending PPSA
legislation is a daunting prospect for many. For this reason, we
have implemented a weekly alert which will use case studies and
solutions to highlight possible issues and answer commonly asked
questions. The first of the PPSA Alert series covers a priority
dispute between the owner of a leased boat and the general
financier.
Question:
Abbottbank has a General Security Agreement over the assets and
undertakings of The Real Julia Pty Ltd (RJ) which is registered on
the PPS Register. Sometime later, RJ leases a boat that it uses to
ferry passengers offshore under a 36 month lease agreement from
Bowen Pty Ltd. Under the lease agreement the boat remains the
property of Bowen, and RJ is required to pay 36 equal monthly lease
installments. Bowen does not register its security interest which
is created by the lease agreement on the PPS Register, even though
it is entitled to register it as a PMSI. RJ defaults under
