Transitional period allowed for PPS Act ends 31 January 2014
As you may be aware, a transitional period allowed by the Personal Property Securities Act 2009 (PPS Act) ends 31 January 2014.
This transitional period applies to security interests that are within the scope of the PPS Act but which were established under agreements made prior to 30 January 2012. The transitional period is to allow time for people to make registrations to protect their security interests.
The transitional period to register interests not yet registered is about to end. It’s important to act now to register any outstanding pre-PPS Act security interests on the Personal Property Securities Register (PPSR) before the transitional/grace period ends on 31 January 2014.
Under the PPS Act a person who supplies goods (on the basis that the supplier retains ownership until paid) or leases goods to a customer can be treated as having a security interest in the goods. Failing to register this security interest on the PPSR can mean these goods will be lost to their customers’ creditors even though the owner of the goods has not changed. If you are selling goods on terms, such as retention of title, or leasing out valuable goods it is important to register if you haven’t received full payment as it can help you recover the debt owed to you.
If you require assistance to understand the risks and benefits of the PPS Act for your business, call the lawyers at The Quinn Group who will be able to assist you. Submit an online enquiry or call us on 02 9223 9166.