Businesses operating across all industries, particularly in the manufacturing, wholesale and retail sectors, a need to understand the implications of the Personal Property Securities Act (PPSA) and the workings of the Personal Property Securities Register (PPSR) to avoid potential losses that may be incurred if your business is not adequately prepared.
If your business leases or hires out equipment or supplies goods to other businesses on delayed settlement terms, you will be particularly vulnerable. The new regime means that businesses must take positive steps to protect their interest in personal property against third parties such as banks and other financiers.
The PPSA commenced on 30 January 2012, bringing with it significant changes to the area of security interests taken in personal property. The PPSA and its associated Register of property interests (the PPSR) are designed to govern security interests in personal property and provide rules as to their priorities and enforcement. Our Plain English Guide to the PPSA and PPSR provides a succinct overview of the legislation and its implications.
The types of security interests that may now be registered, and the definition of personal property, are significantly broader than under any previous regulations and cover most forms of tangible and intangible property.
Coleman Greig Lawyers has particular expertise in the PPSA and PPSR. Since the legislation was passed in 2009 we have conducted regular briefings on the topic to ensure clients understand their obligations, and we have worked closely with individual clients from a broad range of industries to ensure their compliance.
We strongly recommend working with a legal professional to ensure your business is fully compliant and your interests are adequately protected. We can help you with:
- Undertaking an audit of any security interests held by your business
- Reviewing commercial documentation (including sales agreements, distribution agreements, contracts and terms of trade) in light of the PPSA
- Developing internal procedures to manage the registration and ongoing maintenance of security interests on the PPSR
- Training key staff in the workings of the PPSA and PPSR and in particular, how to register a security interest and search the PPSR.
Coleman Greig are available to service your needs no matter where you are located in NSW. Our network of offices are supported by the latest digital technology, enabling us to work with you in a way that suits you best.