Personal Property Securities
The Personal Property Securities (PPS) Act came into full operation on 30 January 2012 replacing more than 195 Acts and Regulations and 70 registers and instead creating a single national regime for the creation, registration, priority and enforcement of security interests in personal property.
Personal property includes items such as:
– furniture and
A security interest may be created as a result of a lender providing finance to purchase personal property or through a lease, consignment, bailment and wholesale sale.
The PPS Act captures many commercial transactions which have not in the past been treated as registrable security arrangements, such as retention of title, commercial assignments, PPS Leases and finance lease agreements. A number of arrangements require perfection under the PPS Act to protect and preserve ownership of the personal property to which they relate and the priority of those arrangements.
The Personal Property Securities (PPS) register, which is maintained and administered by the Insolvency Trustee Services of Australia (ITSA) provides a single online place for people around Australia to:
– register their security interests in personal property to protect those interests
– search to see if personal property is covered by a security interest (for example if it may be repossessed)
The PPS register replaces over 70 registers throughout Australia, including the ASIC Register of Company Charges, Vehicle Securities Register (VSR) and Register of Co-operative Charges.
The core objectives of the PPS Act are to:
– increase the consistency and certainty of secured finance in Australia
– reduce the complexity and cost of secured finance in Australia
– enhance the ability of businesses and consumers to use their assets as security, and improve their ability to access cost-effective finance in Australia.
The PPS Act has had a significant impact on businesses in Australia. However, the PPS Act is still not clearly understood by many business owners. Many business owners are not clear on the impact of the PPS Act or how they can effectively utilize the Act for their benefit. The PPS Act contains dramatically new concepts and rules and is contained in a complex piece of legislation comprising more than 300 pages.