Personal Property Securities Act (PPSA) explained

What is the PPSA?

• The Personal Property Securities Act 2009 (PPSA) is one of the most significant commercial law reforms in recent times. It came into effect at 12.01 am today, Monday 30 January 2012.
• The PPSA will affect all "Security Interests" in Personal Property.

What is a security interest?

A security interest is an interest in relation to personal property provided for by a transaction that, in substance, secures payment or performance of an obligation (without regard to the form of the transaction or the identity of the person who has title to the property). It covers:

• security interests with which we are familiar – charges, mortgages, pledges; and
• arrangements not currently considered security interests (e.g. conditional sale agreements, retention of title clauses, leases of goods, consignments, hire purchase agreements).