Under the PPSA operates the Personal Properties Securities Register (“PPSR”). The PPRS has consolidated a number of other registries in which securities were previously lodged. Anyone and everyone can access the PPSR, and it serves as a large notice board for parties engaging in transactions whether they are consumers, companies, prospective secured parties, etc.
The PPSA has introduced numerous new concepts to our law.
One of these is “attachment”. Attachment occurs when an Agreement is concluded between two parties. At this point the security interest of the secured party ‘attaches’ to the collateral of the debtor to which the security interest relates.
Another concept is “perfection”. Perfection can occur by either taking possession of the collateral to which the Agreement relates or by registering a Financing Statement in the PPSR. Perfection cannot happen until Attachment has first occurred. Perfection provides a party with priority against with all interests subsequent to its own, and any preceding interests which are unperfected. However, the PPSA does contain one or two exceptions to the perfection rule in respect to priority.
Disputes as to priority between two parties to an Agreement will hinge on attachment.
Disputes as to priority between competing secured parties will hinge on perfection.
The PPSA divides all personal property into 7 distinct separate categories. The PPSA sets down different time frames and proceedings dependent on the category of personal property, which is referred to as “collateral”.
If you are presently or in the future going to be involved in an Agreement relating to personal property, be it as the debtor or as the secured party, you MUST be aware of the PPSA. Under the PPSA you now have rights, obligations and duties.
For secured parties who do not comply with the provisions of the PPSA, your security will not be worth the paper it is written on.
At Preston Russell Law we have invested much time in putting systems in place which will protect our client’s interests, and make dealing with this law as simple as our clients would wish.
If you wish to obtain more information about the PPSA please contact our commercial law team
