If you have an agreement that creates for you an interest in personal property that secures the payment of a debt or performance of an obligation and this security interest has been in force since immediately before 30 January 2012, the transitional protection of that security interest expired on 30 January 2014.
It is essential that personal property suppliers, businesses (including those who have historically relied on “retention of title”), licensors and lessors, and businesses with group structures have considered the nature of their personal property arrangements and act to register their security interests. The kinds of arrangements that may give rise to security interests include:
– Sale of goods on credit, where the supplier retains title to the goods until payment is complete;
– Sale of a business that includes personal property;
– Lease of goods from an asset-holding entity to an associated entity that operates the business;
– Agreements for the hire and purchase of goods;
– Agreements for the storage or bailment of goods;
– Other arrangements for the lease or hire of goods;
– Licence agreements for the use of intellectual property;
– Loan transactions, including vendor finance arrangements;
– Agreements for the consignment of goods.
ASIC charges migrated to the PPSR
You may have had charges registered with ASIC that you were informed would be migrated to the PPSR.
Given the difficulties that arose in the migration process and the requirement for registrations to be without defect to be valid, we recommend that you conduct a search of the PPSR to ensure that the details of your security interests are accurately recorded on the PPSR.
If you had a fixed and floating charge over various property that included personal property that can or must be described by serial number (consider motor vehicles, aircraft, watercraft and some rights in intellectual property) an all present and after acquired security interest on the PPSR may not be enough. We recommend you register a separate financing statement over the specific serial numbered property.
Relevant PPSR Webinar
PPSR Registration Tips – Short & Sharp Webinar – 30 Minutes (February 2014)