This paper was co-authored by Kellie Cook, Senior Associate
In October last year we alerted readers to the key date that should be circled in all calendars – 31 January 2014 – the end of the transitional period under the Personal Property Securities Act 2009 (PPSA).
What is the transitional period? The transitional period is the period of 24 months since commencement of the PPSA during which transitional security interests (TSI’s) are given temporary perfection. This means that such interests will be deemed to be perfected (secured) from 30 January 2012. However, unless a registration on the online Personal Property Securities Register (PPSR) has been made or will be made prior to midnight (Canberra time) on 31 January 2014 that temporary perfection will lapse.
What is a TSI? A TSI includes certain leases and retention of title arrangements that were in existence prior to the commencement of the PPSA.
Why is registration important? The legal concept of title has radically changed since the PPSA. If you do not register a TSI or do so after 31 January 2014, you risk losing your assets in the event of your customer’s insolvency: a third party may be able to assert a greater claim to yourassets than you do. If you register your TSI before 31 January 2014, the relevant date of registration will be deemed to be 30 January 2012. This is the best protection you can get for your TSI’s.
What does it cost to register? There are no PPSR registration fees if you register a TSI prior to midnight on 31 January 2014.
If you need more information or an urgent registration then contact partner Emma Leys on (08) 9321 3755.
The information published on this website is of a general nature and should not be construed as legal advice. Whilst we aim to provide timely, relevant and accurate information, the law may change and circumstances may differ. You should not therefore act in reliance on it without first obtaining specific legal advice.