Asset protection: How to comply with the new Personal Property Securities Regime - Part 3

Posted on 29 November 2012

In Part 3 of our blog on the Personal Property Securities Act 2009 (the PPSA) we focus on the how the Personal Property Register works and the strengths and weaknesses for businesses to using the Register.

The Personal Property Register

The Personal Property Register is administered by a Registrar, whose office is within the Insolvency and Trustee Service Australia. The Register allows consumers and business operators to search the database when they need to know whether a particular personal property has a security interest registered against it. The Register is an online database for consumers, businesses and the finance industry and allows access 24 hours access.

Registration for consumer goods or goods described by serial number may be made for up to 7 years and can be renewed fro a further 7 years after expiration. Registration for goods other than consumer goods or goods not described by serial number may be made for up to 25 years or indefinitely and can also be renewed. The cost of registering a financial statement commence as low as $7.40 for 7 years and $130 for an indefinite period.

For more information about the Register click here.

Why register a security?

Benefits

Weakness

Without registration a an interest will remain unsecured on the insolvency of a customer

Customer may object to the registration on valid commercial reasons

Registration is easy

Customer may not be a credit risk

One registration can affect numerous deliveries and there is no need for multiple registrations

Sale may be a small representation of your sales and may not be cost effective to register against all costumers

Sale terms or standard terms and conditions creating a security interest can be relatively simple

You may need private details of the customer and may deter customers

Do you need help?

Dooley and Associates is able to undertake a PPSA review of your current business in order to identify relevant PPSA risks, and recommend modification to your business processes in order to ensure that your business enjoys the protections available under the PPSA. Contact us for your review.

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