Personal Property Securities Register (PPSR)
Attention business operators…
Did you know?
In 2012 a new law, which also established a national online register – the Personal Property Securities Register (PPSR) – was introduced which may increase risk to your business.
A retention of title clause (indicating that the title remains with you until goods are paid for in full) in your contract or invoice, NO LONGER protects you on its own.
There are many horror stories out there but the first case in Australia which was asked to consider the effect of the PPSR was the Maiden Civil case in 2013. In that case, a lessor of machinery to Maiden Civil (P&E) Pty Ltd did not register their interest of the PPSR.
Maiden had also sought finance from a finance company and granted security over all its assets, including the hired machinery, to the finance company. When Maiden went into liquidation, the Court held that the lessor could not recover their machinery lent as it vested in the company and Maiden held the machinery subject to the finance company’s registered security interest.
Essentially, due to the lessor’s non-registration of their security interest, they lost their ownership rights in the machinery on the liquidation of Maiden.
- Sell goods on retention of title terms?
- Hire, rent or lease out goods?
- Buy or sell valuable second-hand goods or assets?
- Want to raise finance using stock or other assets as collateral?