Personal Property Securities Register (PPSR) Celebrates its 7th Birthday
By Emma Spielvogel
7 January 2019
30 January 2019 marks the seven-year anniversary of the Personal Properties Securities Register (PPSR).
Financiers who have registered security interests on the PPSR should be aware of this date, as seven-year registrations registered at the commencement of the PPSR will begin to automatically lapse. Are you ready?
The PPSR came into operation on 30 January 2012 and is a national online register of security interests held in personal property. It is a noticeboard for secured parties to flag their security interests against the personal property of a grantor. In the finance sphere, a grantor (e.g. a borrower) typically grants a security interest over personal property to a secured party (e.g. a financier) to secure payment of a debt.
Importantly, registration on the PPSR is a form of perfection under the Personal Property Securities Act 2001 (PPSA). This establishes the priority of a security interest relative to other security interests in the same personal property. The priority rules under the PPSA provide that a perfected security interest takes priority over an unperfected security interest, and priority between two or more perfected security interests is determined in favour of an earlier perfected security interest.
As the PPSR’s 7th birthday is fast approaching, now is the ideal time to review and update your PPSR registrations.
We recommend that you:
- Review your registrations and identify which ones are going to expire soon. It is likely that you will need to extend or renew your registrations, especially in the context of long-term finance arrangements; and
- Seek expert assistance to update your registrations.
If you do not extend or renew your PPSR registrations before they expire, you run the risk of having those registrations lapse and losing their priority status relative to other security interests in the same personal property.
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