Inefficiency of finding registered securities on the PPSR
While the PPSR has harmonised the process of registering personal property into one single regime making it a database that is much more practical to use than the state centric predecessors, there are still difficulties trying to identify registered asset on the PPSR. Primarily, this is because there are several differing ways in which a personal security can be registered. For example, different information is available on the register when searching a company's ABN or ACN and security interests can be registered against different details depending on the nature of the collateral and the capacity of the grantor. Unfortunately, the process of searching on the PPSR is not as efficient as it could be, thus the need for multiple searches to ensure all personal property is registered.
In addition to the above stated inefficiency in searching the PPSR another problem relates purely to the enormous number of registrations on the register. Large and small scale companies alike can have hundreds, and often, thousands of registrations against them. Further compounding the difficulties surrounding the search of the PPSR is the fact that there is less useful information available on registered security interests on the PPSR than on pre-PPSR registers. The PPSR does not require or provide a detailed description of security interests as it is intended to operate purely as a bulletin board helping to flag security interests. Due to the lack of information available on the PPSR it is often the case that further details will need to be obtained from the grantor and the secured party.
Need further help to ensure protection under the PPSR?
To ensure that all secured interests are protected under the PPSA business owners should look to reviewing their current arrangements. If your business needs verification that all secured interests are protected please call Dooley & Associates for further details.Back