You may be aware of the general 20-business day deadline to register a security interest to ensure that your property does not end up in the hands of an insolvent customer's liquidator.
But if that deadline has already passed, you may think there is no point registering now, because you are too late anyway.
Or you may not even have known about the deadline before reading this article.
Either way, don't despair: courts in WA and NSW have recently extended the time for registration past the prescribed 20 business days.
The WA Supreme Court did so in Carson Investments Pty Ltd v Ausroc Metals Ltd [2016] WASC 267. The NSW Supreme Court did so in In the matter of Accolade Wines Australia Ltd and other companies [2016] NSWSC 1023.
In both cases, the extension was granted in circumstances where the secured party that had sought the extension:
- had not delayed PPS registration on purpose;
- did not understand the consequences of not registering its PPS interest on time;
- had not acted improperly or fraudulently; and
- would not, by being granted the extension, gain a prejudicial advantage over other creditors.
The lesson is: if you are in the business of supplying goods or money on credit, consignment, hire or loan, and you think you are out of time to protect your right to be paid or to take back your property by registering on the PPS register, all may not be lost. You should seek legal advice about your rights and options under the Personal Property Securities Act and the Corporations Act without delay.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
