Recent Precedent 2011 - Issue 1
All REV’d Up
In October 2011 the new Personal Property Securities reform will take effect. ‘Personal property’ is any form of property other than land, buildings or fixtures. It includes ‘tangibles’ like cars, boats, machinery and crops; and ‘intangibles’ like shares, intellectual property and contract rights. Personal property is legally known as ‘collateral’.
The Current Complexity
Currently, there are more than 70 separate Acts which regulate personal property securities in Australia, not to mention the numerous different Registers. This has led to inconsistent laws and multiple registration requirements across the country.
What do the New Laws Mean?
The new Personal Property Securities reform will bring together all the existing separate legal instruments, currently dealing with personal property securities, into one piece of legislation. It will also bring into effect a single, national Personal Property Securities Register, which will take over Registers such as REVS, ASIC company charge Register, Bills of Sale, Ships Mortgages and Crop Liens/Mortgages. This will alleviate the current complications, by reducing costs and delays, and make it much easier for individuals and small-medium size businesses, particularly, to utilise personal property as a central way to raise capital and for businesses accepting personal property as security for payment of their invoices.
How to Prepare?
Generally, the onus is on secured parties to ensure that all their documents have been rewritten and are up-to-date. They must amend their respective business systems and enforcement procedures along with their credit policies. In addition, they must ensure their IT systems are ready to communicate effectively with the national Register and train staff accordingly on the new rules.
What to Do?
The reality is that the new Personal Property Securities reform introduces many changes and complexities, which may be very difficult to deal with. We are happy to help you prepare for the changes and clear up any complications you may experience and ensure that your interests are properly protected. Contact us on 1300 306 335.Back