14/09/2010 11:15:07 PM
Paul Meredith -
Update: After a number of deferrals, the new PPS Register will commence operation on 30 January 2012. It was originally intended to commence in May 2011.
The law regarding personal property securities has been reformed. Who will this impact? Do I need to be across this for my practice or my clients?
These reforms will principally impact individuals or companies who are involved as secured parties in:
• taking fixed and floating charges • long term and finance leases • chattel mortgages• retention of title arrangements • commercial consignments, and • factoring.
It will also impact an entity that grants a security interest over personal property to another party. This includes those who:
• use their personal property as security for a loan, for example a secured car loan• use their business assets as security for a loan, for example a fixed and floating charge• receive property under a retention of title arrangement, or • lease personal property from another party for an extended period.
Under the new law there will be a national Personal Property Securities Register maintained. From the commencement date of the new system, anyone considering purchasing a form of personal property (such as a car, aeroplane, intellectual property, crops or livestock) will want to check the register to make sure that the personal property they are buying does not have a security interest over it.
Further information is available from the PPSR website. Also note that PPS Road Shows were conducted across Australia in May and June 2011.
The law firm Allens Arthur Robinson has a useful series of articles examining the impact of these reforms on various industries:
Paul Meredith (Member since: 4/07/2010 12:05:45 AM)
I am the Head of Professional Standards at the Institute, a chartered accountant and a former suburban practitioner.
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On 6 January 2012 the Attorney-General, Nicola Roxon, announced that the new national register for personal property securities will open for business on 30 January 2012.
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