The New Personal Property Securities Act - Does it Affect You?
The Personal Properties Security Act (PPSA) is a new law that has a significant impact on the way security is taken over personal property. Financiers, along with businesses operating across all industries – but particularly in the manufacturing, wholesale, hire and retail sectors – will be affected.
The PPSA commenced on 31 January 2012 and broadly defines "personal property" as as any form of property other than land, buildings or fixtures that form part of the land. The most common examples of personal property are:
-
aircraft
-
boats
-
caravans
-
cars
-
crops
-
inventory
-
livestock
-
plant and machinery
-
shares
Does the PPSA affect your business? If you answer "yes" to any of the following questions then we recommend you seek advice as to your position.
-
Do you supply goods on credit either under retention of title terms or on the basis of receiving or providing some form of security over the goods?
-
Do you lease or hire goods that are typically described by a serial number such as cars, trucks, planes etc...
-
Are you a party to any commercial consignment arrangements?
-
Do you provide or enter into hire purchase arangements?
-
Do you take or provide security over goods by way of pledge?
-
Do you take or grant any form of security over non-real estate assets to secure the perfirmance of obligations e.g. under franchise arrangements, shareholder agreements or joint ventures?
Please contact our office if you would like further information in relation to the PPSA and we would be happy to refer you to an expert in the area.
