End of Personal Property Securities Act Transitional Arrangements
A transitional period allowed for by the Personal Property Securities Act 2009 (PPS Act) ends on 31 January 2014. This transitional period applies to security interests that are within the scope of the PPS Act but which were established under agreements made prior to 30 January 2012. The transitional period is to allow time for people to make registrations to protect their security interests.
The transitional period to register any interests not yet registered is about to end. It’s important for you to act now to register any outstanding pre-PPS Act security interests on the Personal Property Securities Register (PPSR) before the transitional/grace period ends on 31 January 2014.
Are you selling selling goods on terms, such as retention of title, or leasing out valuable goods?
Registering your interest in goods you haven’t yet received full payment for can help you recover the debt you are owed. Under the PPS Act a person who supplies goods (on the basis that the supplier retains ownership until paid) or leases goods to a customer can be treated as having a security interest in the goods.
Failing to register this security interest on the PPSR can mean these goods will be lost to their customers’ creditors even though the owner of the goods has not changed.
Do you purchase valuable second-hand items?
You can check the PPSR to see if goods such as a vehicle, machinery, stock or other item you intend to purchase are subject to security interests. PPT can do a search to check before you make a purchase which is low cost, easy and gives immediate results.
PPT can provide professional advice to help you understand the risks and benefits of the PPS Act for your business.
For more information call PPT on (03) 5331 3711 or complete our enquiry form to make an appointment.
DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
