Jacksons Rare Guitars sold instruments to the stars and was placed in voluntary administration last year leaving more than 100 clients who were selling their instruments on consignment with only a small chance of retrieving their guitars. The experience has highlighted the potential pitfalls of a new law which, until now, many did not know existed.

The Personal Properties Securities Act, which came into effect on January 30, 2012 requires the owners of consigned goods to lodge their details with an electronic register called the Personal Property Securities Register that can be searched by potential buyers.  Anyone selling personal property on consignment (not just guitarists) must register if they want to avoid the risk of losing a security interest in their goods should the company selling their items collapse.  "Personal property" can include possessions such as cars, boats, caravans, furniture and machinery almost anything except land and buildings.

So if you have assets that are classified as “Personal Property” – take note!

For more information on The Personal Properties Securities Act visit www.ppsr.gov.au.

Source: SMH Article Strings attached as guitar store goes under.