A Four Step Plan To Reduce PPSA Risk

The Personal Property Securities Act (PPSA) presents risks to creditors who do not take steps to protect themselves. These risks are not difficult to circumvent but still seem not to be understood by many.

With Australia scheduled to adopt a PPSA next year, we thought it timely to recap on some PPSA basics, look at what the New Zealand Courts have said and examine the impact of the Australian legislation.

This is the first in a series of three Brief Counsels on this issue.

1. Know when you've got a security interest

• Do you have goods located at someone else's premises which you own or expect to have a claim to?
• If a party you do business with went into receivership or liquidation, is there any asset (goods or intangible) that you would expect to be able to demand from the receivers or liquidators?