FINDING GOLD - NAVIGATING THE PPSR

29/11/2012

The Personal Property Securities Act (PPSA) has been in force now throughout Australia for almost a year. While few would say the PPSA is easy to understand, business people have plenty to gain by getting information from the Personal Property Securities Register under the PPSA (PPSR).

To get information from the PPSR, you need to know how to access it.

We have prepared 5 flowcharts which tell you exactly what to do.

Our 5 flowcharts cover:

1. Creating a Secured Party Group on PPSR

This sounds as if you are organising security for your teenager’s party. Nothing of the sort! If you want to register any security interest on the PPSR (such as a retention of title agreement or to secure a loan), you must set up a Secured Party Group. This flowchart tells you exactly how to do this.  Once done, you can move to doing other more practical tasks. This first flowchart is here.

2. Searching Security Interest on PPSR

There are many reasons why a business may want to search security interests on the PPSR. Permitted searches include:

  • to find any registration in which the business is a secured party
  • if you wish to purchase personal property
  • if you are deciding whether to give credit to a person
  • if you wish to invest in a company or business.

If you need to search the PPSR, it must be for a permitted search. This second flowchart is here.

3. Registering a Security Interest on the PPSR

You are lending money to a business or leasing goods to it or supplying it with goods it will sell and pay you for only after they are sold. If you know how to register on the PPSR the security you are taking you can register quickly, cheaply and effectively by following our flowchart and better protect your business.  This third flowchart is here.

4. Discharging a Security Interest registered on the PPSR

When you get paid all the money you are owed by a customer and you need to discharge a security interest that customer gave you, this flowchart explains how you do this in a few simple steps. It is speedy and very easy to do. The only thing you need to remember is to provide the statement verifying the discharge of the security interest to your customer (because your customer cannot register the discharge). This fourth flowchart is here.

5. Discharging a Security Interest that has been migrated on to the PPSR.

This flowchart helps you discharge a security interest on the PPSR that has been migrated to the PPSR from other registers. The best example is a company charge originally registered with ASIC but migrated onto the PPSR. This is the flowchart with the most steps but even this is simple and easy to follow. This fifth flowchart is here.

If you have any questions on these flowcharts or the PPSA or the PPSR, please send an email to info@townsendslaw.com.au or contact TOWNSENDS BUSINESS & CORPORATE LAWYERS on (02) 8296 6222.