New legislation known as the Personal Property Securities Act 2009 (PSSA) will change the way security is taken over personal property other than real estate.  The PPSA incorporates a single national register for Security Interests in Personal property.  It replaces around 70 existing national, state and territory laws and registers including the ASIC register of changes and the Register of Encumbered Vehicles (REVs) consolidated into one personal property securities register (PPSR).  The register will be web based and available 24/7.  Personal Property is any asset other than real estate and includes: motor vehicles, plant & equipment, stock, intellectual property & intangibles and accounts receivable.

Any person or business that sells stock to customers on credit, uses retention of title clauses, leases plant & equipment, motor vehicles or has goods or assets on consignment with third parties is impacted.  If you fail to register you risk losing any claim to an interest in collateral.

The PPS Act and PPS Register are now scheduled to start in February 2012.

You should seek appropriate legal advice to ensure your interests are protected.  For more information visit the web site www.ppsr.gov.au.   We thank Peter Rusbourne of Watkins Tapsell for his contribution to this topic.