What is the Personal Property Securities Register?
The Personal Property Securities Register (PPSR) is an official government electronic notice board of debts and other obligations secured by interests in personal property, accessible by the public 24/ 7. The register does not act as a register of ownership, rather it acts as a record of registered security interest agreements where a party can take property if a debt is not repaid. The register is a comprehensive commercial regime that acts as a national system replacing the state-based system that operated prior to 2012.
The PPSR acts as a public notice board for registered security interests in personal property.
What kinds of personal property can be registered?
Typical types of personal property that can have a security interest registered over them include:
- Company assets;
- Used goods; and
- Intellectual property.
Excluded from being registered on the PPSR are land, buildings, fixtures to land, water rights and government-issued licences.
Why should someone register on the PPSR?
A written agreement may not be enough to protect an interest in personal property. When someone such as a creditor, hirer or lessor of personal property registers their interest on the PPSR, they are letting everyone else know that that they are claiming to have a security interest in the personal property concerned. Registration gives a party a high priority and a greater chance of getting the personal property back if the borrower does not pay their debts or becomes insolvent.
Registration gives a higher place in the queue and greater chance of receiving goods back in the event of insolvency.
Why should someone search the PPSR?
Before purchasing personal property, people can search the register to ensure that the property they are buying is free of any registered security interest. Upon completion they will receive a certificate that can be used as a record. Failure to search the PPSR may result in the loss of personal property where there is a registered interest against it, even if it has been paid for.
How does the PPSR impact you?
Every business that supplies goods or credit needs to consider the impact of how the register operates to ensure that they protect their priority over competing interests in the same personal property. Likewise, when purchasing property, businesses should also consider the role of the PPSR to ensure that they are taking personal property free of any interests to protect their ownership of the personal property.
For more information contact our Property & Commercial lawyer John Wellington