Don't 'trust' that the PPSR security
interest is right.
Finding registration defects is not unusual for insolvency
practitioners under the Personal Property Securities Act
2009 registrations, especially when dealing with a corporate
trustee. Consider the following as a prime example of a security
interest registration that went wrong!
Recently, we were appointed liquidator to an entity whose only
asset was a vehicle subject to a security interest registered by a
major finance company. We found the company acted as a corporate
trustee and applied for the vehicle's finance as the trustee of
a discretionary trust.
However, section 153 of the Personal Property Securities Act,
regulation 5.5(1) and schedule 1 of the Personal Property
Regulations 2010 is quite specific that where the grantor entered
the agreement as a trustee of a trust that holds an Australian
Business Number (ABN), the registration must be recorded over the
trust's ABN for it to be valid.
