Key terms and concepts
Key terms and concepts of the PPS Act
The PPS Act introduces a radical new regime for creating, recording, registering and enforcing security interests in Australia.
The PPS Act introduces a new register and some new concepts that are similar to existing securities law concepts, but have special meaning under the PPS Act.
The Personal Property Securities Register
The Personal Property Securities Register (PPS Register) is an online single national register that replaces a large number of different national and state based securities registers such as the ASIC Register of Fixed and Floating Charges and the various motor vehicle interests registers.
The PPS Register can be accessed online for registrations and searches and will be updated in real time.
Secured parties will be able to register their security interests before they enter into the transaction under which the security interest arises. By doing this, the secured party can seek to protect its position before funds are advanced.
Secured parties who are going to undertake a number of registrations, such as financiers and retention of title suppliers, can create a secured party group on the PPS Register. This ensures that details such as addresses for service of notices do not have to be entered multiple times.
Personal property
The PPS Act defines personal property very broadly. Personal property does not include land, but does include almost every other form of property, including intangible rights such as intellectual property.
Security interest
A security interest is any interest in relation to personal property that, in substance, secures payment or the performance of an obligation. This includes traditional forms of security interest such as charges, bills of sale and chattel mortgages .
However, the PPS Act also treats as a "security interest" certain rights that are not traditionally considered to be securities, such the interest of an owner of goods hired or leased, goods consigned or goods supplied under a retention of title arrangements. These interests also need to be registered on the PPS Register to have protection under the PPS Act.
If you would like further information on accessing the PPS Register and key concepts under the PPS Act, please contact a member of the Maddocks Personal Property Securities Team.