Personal Properties Securities Register
Personal property security (PPS) reform brings the different Commonwealth, state and territory laws and registers regarding security interests in personal property under one national system. PPS reform introduces the Personal Property Securities Act 2009 (Cth) and a single national online PPS Register.
This new reform will take effect 30/1/2012.
The impact of this reform is far reaching and will affect any organisation that currently holds security over specified assets, or that has terms and conditions (which may date back years) with its customers that specifically include a Romalpa (Retention of Title) clause (ROT), or that hire out equipment or vehicles etc., or that sell on consignment…
This bulletin is a simplified outline of what its impact will be. Go to www.ppsr.gov.au for full details.
What it means…
Financiers will have to register their security on the PPS e.g. a car secured as part of a personal loan (Vehicle Securities Register & REVS etc. will be automatically migrated to PPS)
Goods sold & delivered suppliers who have ROT clauses (or sell on Consignment) MUST now register them on PPSR. All ROT clauses on clients existing T&C’s will be invalid from the date of commencement of PPSR. (To state on your invoices that ownership of goods remains with you until the invoice is paid will no longer have any impact).
The PPSR will be one register Australia wide for the registration of ALL securities, tangible or intangible (Except for real estate & fixture & fittings).
Registrations will be 1st in best dressed, i.e. if 2 companies register a security over the same ‘property’ then the 1st in gets priority.
Also having PPS security registration ensures that if a ‘debtor’ becomes insolvent then the item registered will not become part of the processes of the Trustee / Administrator.
The PPSR will be ‘searchable’ by any party that can show just cause to search.
Securities that could not be registered elsewhere previously can now be on PPSR. (2 year transitional leeway will be provided)
Our local solicitors are offering their services to all clients of Score to review and if necessary re-draft your Terms & Conditions &/or Credit Applications. This review will also take into account the effects that the ACL (Australian Consumer Law) has on your activities. It has been in existence since January 2011.
Remember it is quite probable that your existing securities and terms & conditions will be ineffective once the PPSR is activated.