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The Australian PPSA

By Mike Worsnop - 26 Jan 2012

The Australian Personal Property Securities Act 2009 will commence on 30 January 2012 introducing a new regime regulating interests in personal property.  Readers may recall the introduction of similar legislation in New Zealand in 2002 and the changes that it brought in terms of the registration and enforcement of security interests in this country.

As in New Zealand, the Act creates a single register for all security interests in property other than land and buildings.  Charges over companies that were previously registered on ASIC will now be registered on the PPSR.  Some existing charges will be automatically transferred. Holders of other security interests will have a transitional period within which to re-register.

Businesses selling products under retention of title arrangements or in the business of leasing or bailing equipment will now be able to register the security interest created by those arrangements.  Those who don't may lose priority to general security holders.  It will therefore be crucial for those businesses to review and update their terms of trade and customer contracts and implement processes for registering their interests.

If you believe your business might be affected or you have any queries in this area, please contact your usual Martelli McKegg contact or one of our commercial partners, Mike Worsnop , Andrew Nicoll or Melissa Higham.


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