New National Online Register for Securities over Personal Property
In December 2009 the Commonwealth government passed the Personal Property Securities Act 2009 (Cth) (PPSA). In recognition of the substantial changes to the regime for securing rights over personal property, the PPSA does not commence until early next year. The delayed commencement of the PPSA was designed to enable the creation of the Personal Property Securities Register (PPSR) and to facilitate changes to business practices.
The purpose of the PPSA is to:
- replace numerous pieces of Commonwealth and State legislation and registers by creating a single set of national rules governing the validity, priorities, enforcement and extinguishment of security interests in all personal property; and
- establish a single national online register for securities over personal property, the PPSR.
The PPSA will apply to a variety of current security interests including personal property leases, stock mortgages, retention of title rights, bills of sale, motor vehicle securities, company charges and most other securities affecting tangible and intangible personal property rights.
Existing registered interests will be migrated from existing registers to the PPSR prior to the commencement of the PPSA. There will also be a transition period for existing rights. However, new rights must be registered under the PPSA.
As currently drafted the PPSA will commence on or about 1 February 2012. However the Federal parliament is currently considering a bill that may defer that date.
Regardless of the possible change to the commencement date, businesses affected by the PPSA should ensure that their agreements and arrangements will be PPSA ready by early next year.
Watch this space for further updates.
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