Personal Property Securities:

Within the last seven years there has been a major change as to how someone registers a security in NSW. Under the current laws, if an individual or company has a legal interest in an asset owned by another, they can register this interest on the Personal Properties Securities Register (PPSR). Some common examples are as follows:

1. A finance institution providing finance for the purchase of a car, will register their interest over the car on the PPSR;
2. If a company leases equipment, they will register their interest in the leased equipment on the PPSR;
3. If a company supplies goods to another company, they can register an interest on all goods supplied now and in the future on the PPSR or can register an interest against the goods supplied pursuant to a specific contract. 

There is no limit to the number of interests that may be registered against an individual or company. Some larger companies have hundreds of interests registered against them.  Those creditors who have registered an interest will have a priority over those who have not should the company be wound up or the individual declared bankrupt. The order of priority will depend on the date on which each registration is effected.

Disputes about the personal property securities typically occur once an individual is declared bankrupt or a company is wound up. The interests of all creditors will examined by the trustee or liquidator. The trustee or liquidator will make an assessment as to whether the interests on the PPSR are valid. This will involve looking at whether the interests have been registered within the allowable time and whether they meet all other legal requirements. It is not uncommon for trustees/liquidators to be very strict on the question of compliance.

Where there is a dispute about a registered interest, negotiation is commonly the alternative dispute resolution process utilised, however, this will not prevent a party from commencing legal proceedings should it be appropriate to do so.

If you wish to speak with one of our Personal Properties Securities Lawyers, please contact our firm by telephone on (02) 9233 4048 or send an email to info@navado.com.au. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.