Earlier this year, we issued a legal alert on the Personal Property Securities Act 2017 (PPSA) available at https://www.munroleyslaw.com/the-ppsa-is-here/.
Under the PPSA, 180 days was provided to secured parties to register “prior transactions” on the Personal Properties Securities Registry (PPSR). Prior transactions mean those concluded before 31 May 2019 (the date that the Act came into force) that fall within the scope of the Act including, but not limited to, those registered under the old legal framework. This includes, for example, bills of sale and mortgage debentures registered at the Companies Office. Registration on the PPSR will ensure that parties maintain priority of their secured interests and/or ownership of personal property covered by transitional security interests.
The timeframe for registration of these prior security interests expires on 27 November 2019.
Are you affected?
Most banks and credit institutions have completed their transitional registrations of securities they have taken over personal property. However others are also affected by this.
If you or any business you are part of has, for example:
– taken a mortgage debenture or bill of sale over the personal property (that is, property that is not land and affixed buildings) of another person
– sold goods to others on the basis of a retention of title (Romalpa) clause or
– leased personal property to someone else for a period of more than 12 months
then you could be affected by these issues – and if you do not achieve registration of these security interests by 27 November 2019, you could lose the priority over this personal property secured by your current charge.
The above are examples only of how the PPSA could apply to you. There are others.
27 November is the critical date for ensuring that your existing rights as a secured creditor over personal property remain protected under the new PPSA regime. If you have any questions on these issues, please contact Richard Naidu, Glenis Yee or Mahendra Chand.
The information and opinions in this Legal Alert are for general information purposes only. They are not intended as specific legal or other professional advice and should not be relied upon or treated as a substitute for specific advice. Munro Leys can accept no responsibility for any loss arising from reliance on the general information contained in this Legal Alert.