PPSR Security Interest

Securing A Debt Over The Borrower’s Personal Property

What is the Personal Property Securities Register (PPSR)?

Normally when you lend money to someone, you register a mortgage over their real property at the Land Titles Office. But, there are many situations where a person does not have any real property and can only provide “personal property” as security. You cannot register your interest at the Land Registry over personal property such as a car or a boat.

In 2012 the PPSR was established to enable lenders to register a security interest over personal property. The Personal Property Securities Act 2009 (Cth) is a law about security interests in personal property other than real estate and is set out in the Personal Property Securities regulations.
A security interest is an interest in personal property that in substance secures payment of a debt or other obligation.

Some examples of personal property interests that can be registered on the PPSR
  1. Licence agreements (such as equipment and intellectual property)
  2. Hiring or leasing of goods, including motor vehicles
  3. Selling goods on retention-of-title terms
  4. Selling businesses or assets under instalment arrangements or vendor terms
  5. Goods supplied on consignment
  6. Purchase agreements
  7. Any agreement involving personal property as security (including a fixed charge, floating charge, chattel mortgage, conditional sale agreement or hire-purchase agreement)
Person signing Personal Property security register document

What is the Purpose of the PPSR?

The effect of the PPSR is that Title is no longer relevant. If you have registered a Security Interest in the Personal Property Securities Register, you have a “superpriority” over unregistered interests (including third parties) and interests registered later than your interest.

Commencement Date:
The PPSR has been live since 30 January 2012.
In most cases you have 15 days from when the interest is created to register that interest on the PPSR.

How does a PPSR Security Interest affect you?
You may need to register an interest to cover your loan, or may be concerned that there is an interest that has been registered over the personal property that you have purchased.

How to register a security interest on the PPSR?

A new entry must be created on the PPSR. The registered interest must be backed up by some sort of security agreement. It is important that the interest is accurately registered. If any details are incorrect, such as who the Grantor is, or registerable details of the property, the registration may not be effective.
We can assist by:

  • Conducting a PPSR Search to check current PPSR registered interests
  • Advising if you need to be concerned with the PPSR legislation
  • Advising on and drafting any necessary documents to create a PPSR security interest in the security register format
  • Perfecting & Registering your interest on the PPSR

Let our experienced Property Lawyers set out what we can do to register your PPSR security interest to protect the money you have lent

We can also provide advice about removing a PPSR security interest registered against your property

You can rely on our firm to do a PPSR check and give PPSR advice. After registration, we can assist with managing and maintaining a PPSR Personal Property Security interest

If you have a dispute regarding a PPSR registration, let our PPSR Security Interest Lawyers advise on how to attach and enforce a security interest. Contact our team.

 

PPSR  FAQs

 

Q. What personal property can be used to secure a debt on the PPSR?

Some example are:

  • Car

  • Boat

  • Truck

  • Caravan

  • Coin Collection

  • Artwork & Jewelry

  • Farm Equipment

  • Industrial Machinery

  • Business Equipment

  • Pedigree Animals such as a stud horse or bull

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