What is the PPSA?
The Personal Property Securities Act 2009 (PPSA) is one of the
most significant commercial law reforms in recent times. It has now
come into effect as at 12.01 am on 30 January 2012
The PPSA will affect all "Security Interests" in
Personal Property.
Impact on technology and telecommunications businesses
The PPSA will have a significant effect on the Technology and
Telecommunications industries. Some examples where security
interests may be created are as follows:
- Equipment leases: Any leases or bailments of
IT or telecommunications equipment may be caught by the PPSA. This
would include for example servers, desktops, PABXs and
photocopiers.
- Retention of title: Any situation where a
vendor retains title to any equipment will be caught by the PPSA.
This includes situations where title transfers at a later date
(e.g. on final payment). This may include for example a hardware
roll-out agreement where title transfers on payment.
