Using the Personal Property Securities Register (PPSR) can protect you as a business owner when you are buying, selling, leasing or hiring business assets.
The Personal Property Securities Act 2009 (Cth) (PPSA) is a law about security interests in personal property, which has changed the way in which security is granted and registered in Australia.
If you or your business is lending money in Australia, it is vital that you ensure that your security interest is registered on the Personal Property Securities Register (PPSR).
What can be registered under the PPSR?
Under the PPSA, it is not only security interests, such as General Security Agreements, that can be registered. Leases can also be registered. Whether or not your lease can be registered depends on the length of the lease, and a range of other factors. It is sensible to check whether your interest, be it a GSA or a lease agreement, is registrable.
The PPSR is a single access point for businesses and consumers to register and check security interest on personal property. Items that can be registered include:
- Vehicles such as cars, boats or aircraft
- Retentions on a construction contract
- Stock in trade, artworks and equipment
- Other goods, new or second-hand, whether owned by businesses or individuals
- Intangible property, such as patents, copyright, commercial (not government-issued) licences, debts and bank accounts
- Financial property such as shares, cash or cheques
What is the benefit of registering your security interest under the PPSR?
Registering your personal property protects your interests in the goods or assets, should your customer default or become insolvent. If you register early, you also have a better chance of being paid before other creditors.
If you have any questions regarding the PPSR, contact our banking and finance lawyers for information and advice.