Thursday, March 23, 2017 - Posted by Michael McCulloch
The final transitional period provided under the Personal Property Security Act 2009 ("PPSA") has now expired.
What does this mean?
The transition period allowed until 30/01 for registrations that were migrated without an end date or with missing or incomplete fields to be updated and / or changed to ensure that your interest remained protected. With the transition period having now lapsed if you did not take action before this date you may find that your interest cannot be located on the PPSR.
Can amendments be made after the transition period?
In most cases the answer to this question is "yes" however some migrated registrations will need to be re-lodged.
What if there is no end date registered on the PPSR?
If no end date was entered the registration will remain on the PPSR until the expiry date recorded on the original registration or when the registration is discharged.
What happens if a registration is defective?
A registration will be deemed to be defective if it does not comply with s164 and s165 of the PPSA -
Personal Property Securities Act 2009 - Section 164 Defects in Registration - General Rule
(1) A registration with respect to a security interest that describes particular collateral is ineffective because of a defect in the register if, and only if, there exists:
(a) a seriously misleading defect in any data relating to the registration, other than a defect of a kind prescribed by the regulations; or
(b) a defect mentioned in Section 165.
(2) In order to establish that a defect is seriously misleading, it is not necessary to prove that any person was actually misled by it.
(3) A registration that describes particular collateral is not ineffective only because the registration is ineffective with respect to other collateral described in the registration.
Personal Property Securities Act 2009 - Section 165 Defects in Registration - Particular Defects
For the purposes of paragraph 164(1)(b), a defect in a registration that describes particular collateral exists at a particular time if any of the following circumstances exist:
(a) in a case in which the collateral is required by the regulations to be described by serial number in the register--no search of the register by reference to that time, and by reference only to the serial number of the collateral, is capable of disclosing the registration;
(b) in a case in which the collateral is not required by the regulations to be described by serial number in the register--no search of the register by reference to that time, and by reference only to the grantor's details (required to be included in the registered financing statement under Section 153), is capable of disclosing the registration;
(c) if the registered financing statement (as amended, if at all) indicates that a security interest in the collateral is a purchase money security interest (to any extent)--the security interest is not a purchase money security interest (to any extent) in the collateral;
(d) in any case--circumstances in relation to the data related to the registration that are prescribed by the regulations.
What if I need further assistance?
We recommend that you obtain you own independent legal advice or contact the PPSR National Services Centre on 1300 007 777