Are you ready for the PPSA?
New legislation called the Personal Property Securities Act (“PPSA”) came into effect recently. It will dramatically alter the way we deal with personal property and the way in which security over personal property can be protected.
“Personal property” is any property (except real estate and fixtures to land) such as machinery and equipment, motor vehicles, book debts, stock, trademarks and patents etc.
The PPSA will regulate any “security interest” in personal property. If you do not protect your rights you risk losing your interests in that property.
For example you could lose:
- priority to another creditor; or
- title to your property if it is left in the possession of someone else (eg. if they sell it or if they go into liquidation etc ).
How does the PPSA affect you?
If you answer yes to any of the questions below, you should contact us to discuss how the PPSA may affect you and what steps you should take to protect your interests.
- Do you own personal property that could be in someone else’s possession for longer than 90 days ?
- Do you consign goods to other people to sell ?
- Do you manufacture and sell goods ?
- Do your conditions of sale state that you retain ownership until you are paid (i.e.
retention of title clause)
- Have you granted “fixed and floating” charges or have they been granted to you ?
- Do you include charging clauses in your standard documents to give you security for an obligation ?
A single national online register of Personal Property Securities interests called the PPS Register (“PPSR”) has been established.
It is essential to register your security interests in order to obtain priority. By registering your security interest you can prevent another person taking ownership of your goods.
Any delay in registering your security interest or inaccuracy in the registration could be disastrous. New security interests created must be registered quickly and in some cases may be registered before the transaction is completed.
If you have any questions about this blog post, do not hesitate to contact McLaughlin & Associate Lawyers via call or email.
Alternatively, you may visit our office in Springwood.