Personal Property Securities regime to commence 30 January 2012

There is less than one month remaining before the new Personal Property Securities regime (‘PPS’) commences. The commencement date for PPS has been delayed on a number of occasions but is now scheduled for 30 January 2012.

PPS will be governed by the Personal Property Securities Act 2009 (Cth) and will be a fundamental change to the way security is taken over ‘personal’ property.

Personal property is defined under the Act. It includes most assets, rights and property other than real estate. Notwithstanding the name, 'personal' property can include property owned by companies as well as individuals.

The Act is relevant not only to banks and finance companies, but to a wide range of businesses, including businesses that provide goods and services on credit terms.

PPS will involve the introduction of a new online PPS register of security interests. Many security registers around Australia (including the ASIC Register of Charges) will be migrated into the new system. Registration on the PPS Register will be critical in determining the priority of security interests if enforcement is required.

Of great importance, many interests which have not traditionally been considered 'security' interests (for example, retention of title arrangements) may need to be registered. If you have terms of trade which includes security terms or retention of title terms, we can provide advice on the new regime and on how you can update to protect your interests.

If need be, we can assist you to enforce your security.

Please contact our Commercial Transactions team if you have any questions or require our assistance in relation to PPS.