PERSONAL PROPERTY SECURITIES ACT
New national laws introduced by Personal Property Securities Act 2009 will govern personal property security interests. These new laws change the way any person or company either gives or obtains security for any credit transaction.
These new laws will control strictly the credit arrangement, registration, and ability to enforce the security for the debt.
It is imperative to prepare immediately for the introduction of these new laws. The consequence for not implementing the new requirements is that, for example, suppliers may not be able to recover goods sold on credit (previously held under retention of title clauses) and lose priority rights over other creditors. These consequences also apply to liquidators or other insolvency arrangements.
APPLICATION OF PERSONAL PROPERTY SECURITIES ACT
They will:
EXCLUSIONS
The new laws will not apply to:
NEW CONCEPTS
The legislation introduces new concepts that include:
The concept of security interest will extend to transactions that include:
REGISTRATION
Registration and accurate identification of the security in the register is critical to the supplier’s security being enforceable-“...its all in the timing...”
By not registering within the prescribed time and not accurately identifying the goods or property that are being secured will result in loss of security
The new laws also allow registration of a security interest for both offshore:
RECOMMENDATION
Although, this brief outline only highlights some pertinent issues, which may or may not yet affect you; we suggest that you call 9646 0344 to make an appointment and meet with us to focus on your specific circumstances and evaluate how the new laws affect your business. This will allow you to prepare and implement the necessary changes on time.
NEED MORE INFORMATION
Behan Legal assists and advises on these important issues. For an appointment, call 03 9646 0344.
Telephone:
(+61)3 9646 3334
POSTAL ADDRESS:
PO Box 745 Port Melbourne Victoria
Australia 3207