Secured Assets Register - End Of The Transitional Period
Does this apply to you?
If you or your business took security over movable or intellectual property before 30 January 2012 or entered into a security agreement before that date you may need to perfect your security by midnight on Friday 31 January 2014 if you have not already done so.
What is the Personal Properties Securities Register?
The Personal Properties Securities Register (“PPSR”) is a national register created in January 2012 of security interests in “personal property”. Personal property is all property other than real estate and fixtures to land. The register can be accessed here. It is a new system for the creation, priority and enforcement of security interests in Australian personal property.
Security interests that were previously registered on a Commonwealth, State or Territory register will normally have been migrated to the PPSR.
What is a Transitional Security Interest?
A Transitional Security Interest (TSI) is an interest in personal property that secures payment of a debt or performance of an obligation that existed before 30 January 2012 or arose pursuant to an agreement made before that date – for example, goods supplied in December 2013 pursuant to an agreement made in 2011 that includes a retention of title clause.
TSIs can include leases with a period of more than one year (or 90 days for certain serial numbered goods such as motor vehicles) and commercial consignments.
How do you register a Transitional Security Interest?
If you are a secured party with an unregistered TSI you need to register it on the PPSR by midnight Canberra time on Friday 31 January 2014 – see link above.
What happens if you don't register a Transitional Security Interest by 31 January?
You will lose the benefit of the transitional provisions.
Instead the “perfected” status of your security will only begin from the time you register your interest after 31 January. This means that you may lose priority to another creditor who registers their security interest before you do – if the entity holding the secured property becomes bankrupt or insolvent you may be unable to recover part or all of your investment in the secured property.
Purchasing second hand motor vehicles etc...
The PPSR replaced the NSW Register of Encumbered Vehicles (REVS) and other, similar state registers – a PPSR search for a second hand car costs $4.00 payable by credit card.
If you have any questions please contact your client service partner at UHY Haines Norton.