If your business registered 7 year security interests on commencement of the Personal Property Securities Act 2009 (Cth) (Act), registration of the interest is due to expire at midnight on Wednesday, 30 January 2019. It is vital to renew these registrations NOW to continue to protect your interest in the corresponding personal asset.
Registration of a 7 year interest was commonplace on commencement of the Act on 30 January 2012, 7 years being the maximum registration period for security interests made in respect of goods with a serial number such as motor vehicles and intangible property such as such patents and trademarks.
The Personal Property Securities Register (PPSR) is the record of all interests in personal property registered under the Act. Importantly, the PPSR only allows businesses to renew a registration before its expiry date.
Expiry of a security interest on the PPSR in circumstances where the interest has not been renewed means:
- the registered security interest will lapse and the security interest in the personal property involved will become unsecured, ranking in priority behind other creditors with renewed or more recently registered security interests; and
- the interest in the personal property may vest with the entity who granted the interest if that entity becomes insolvent.
For more information call KS Law or visit the website of the Australian Financial Security Authority at https://www.ppsr.gov.au/do-you-know-when-your-ppsr-registrations-are-due-expire
The content of this article is intended to provide a general guide to the subject matter. Specialist individual advice should be sought about your specific circumstances.