The Personal Property Securities Register (PPSR) is where details of security interests in personal property can be registered and searched.
PPSR, which commenced on 30 January 2012, had been undergoing transitional arrangements ever since. These arrangements were to smooth out the changeover from the period before PPSR, which aim to protect existing security interests and provide the necessary protection. As of 31 January 2014, these transitional arrangements are no longer valid.
For those who supply goods/assets and failed to register their security interest during the transition period might lose their priority should their customer(s) become insolvent. Starting 1 February 2014, any security interests logged with PPSR will be prioritised over all unregistered interests, which include non-registered transitional security interests.
The following commercial agreements are what would have been deemed transitional security interests and eligible for registration on PPSR:
- Leases/hiring agreements
- Retention of title supplies
- Commercial consignments.
If you are aware that the security interests have been migrated to the PPS register, you would need to review the registered details and ensure errors are corrected. In case of a customer going through insolvency, the accuracy of the details in the register is crucial to avoid any conflicts arising with the enforcement.
For those who would like to find out more, you can access a range of customised fact sheets via AFSF, or formerly known as ITSA.