Commercial Property Law Alert #1 2014: Five key questions you need answered about the PPSR

Posted on March 1st, 2014

by Lana Black

Lana Black is a Solicitor at Mullane & Lindsay and works primarily in our Commercial & Property Law team.

What is the PPSR?

The Personal Property Securities Register (PPSR) is a nation-wide online register which records security interests in personal property. The PPSR was created under and is governed by the Personal Property Securities Act (the Act).

Personal property is defined as any form of property other than land, buildings or fixtures. Some examples of personal property are cars, machinery, artworks and intellectual property.

Under the Act there are a variety of security interests in personal property which are capable of registration on the PPSR, including:

  • Mortgages and charges;
  • Retention of title clauses in sales agreements;
  • Financing or operational leases for a term exceeding 12 months (or three months for cars, boats or aircraft);
  • The interest of a factor in an account; and
  • Consignment arrangements.

How does the PPSR assist in enforcing security interests?

In order for a security interest to be enforceable against the grantor, it must have ‘attached’ to personal property, being the collateral. Attachment occurs where a grantor, who has rights in the collateral, accepts money or does some other act by which the security interest arises. It is important to note that as a general rule, in order for a security interest to be enforceable against a third party the security agreement must be in writing and signed by the grantor. Read the rest of this entry »