PPSA - Why your clients need to take action now

Key protections under the Personal Property Securities Act (PPSA) come to an end on 30 January 2014. Businesses that have been relying on the transitional rules to protect existing credit, hire or lease arrangements need to take action now or risk automatically losing their rights in their property or position as a secured creditor.

The PPSA affects arrangements such as:

• sale of goods on credit with retention of title;
• leases or licences of goods (particularly heavy vehicles or expensive equipment);
• business licence arrangements;
• arrangements where contractors store property on the principal's land (e.g. portable site office or large equipment items);
• certain take-out rights under construction contracts; or