Personal Property Securities Update: Senate Committee Recommends Bill To Be Passed Without Amendment

The Legal and Constitutional Affairs Legislation Committee has recommended that the Personal Property Securities (Corporations and Other Amendments) Bill 2010 (Cth) (Bill) be passed without any amendment. This raises a significant number of issues for secured financiers.

As mentioned in our March 2010 update, the Bill was referred to the Senate Committee for inquiry.

The Senate Committee received 11 submissions (including from the Attorney General itself) in respect of the Bill. Although a number of issues raised in the submissions were of a technical nature, they are likely to have significant adverse practical consequences to secured financiers.

The purpose of this update is to highlight the main issues arising from the Bill, which will need to be considered by secured financiers involved in asset financing.