Personal Property Securities (PPS) Reform
Personal property encompasses any form of property other than land or buildings and fixtures that form part of the land, and may include cars, boats, machinery, crops, shares, intellectual property and contractual rights.
Currently each Australian State and Territory has its own laws and registries relating to Personal Property Securities (PPS). However, from May 2011, the Personal Property Securities Act 2009 (Cth) (Act) provides for a single national scheme governing all types of security interests over personal property, and one national online PPS Register, allowing lenders and businesses to register any security interests.
PPS reform is changing the law and practice for secured financing involving personal property. A number of existing Commonwealth, State and Territory PPS registers will close. Security interests which are currently registered on those registers will generally be transferred to the national PPS Register.
You need to be aware of how the Personal Property Securities Register will affect you or your business if you:
- are an organisation or individual that provides finance secured by personal property or lease personal property or supply goods on a retention of title basis;
- are thinking about buying personal property such as a boat or a car;
- lease equipment; or
- grant a security interest over personal property to a secured party.
Secured parties, buyers and other interested parties can search the PPS Register to find out if a security interest is registered over the personal property. A search will provide national information, so you will be able to find out whether there is any debt or other interest on the personal property anywhere in Australia.