The commencement of the Personal Property Securities Act
(2009) –the "PPSA" is now scheduled for early
2012 after yet another delay. If your business involves the supply
of goods and you haven't yet considered the impact of the PPSA
on your business, now is the time!
The type of "security interests" covered by the PPSA
is quite broad. This means that certain transactions which are not
traditionally regarded as creating security may now give rise to a
security interest which needs to be registered.
Supplying goods on a retention of title basis (meaning that the
seller retains legal title to the goods, even after delivery to the
purchaser, until payment is received), is one of them. Currently,
as a supplier of goods on a retention of title basis your right to
be paid is "secured" by the fact that you hold legal
title to the goods, and on the insolvency of the customer you are
able to enforce this "security‟ by repossessing the
property you own.
