The Personal Property Securities Register came into existence as the single, national online database of security interests in personal property in Australia on the 30th of January 2012.
A vast number of businesses began registering security interests on the PPSR on or shortly after that date. However, the Personal Property Securities Act 2009 restricts registration in relation to consumer property or property described by a serial number to a maximum of 7 years. Those 7 year registrations made when the PPSA Act first came into force are therefore about to expire and will be revoked unless renewed.
This will mean more than 120,000 of those PPSR registrations were due to expire at the end of January 2019, potentially leaving previously secured parties unsecured.
Some registrations were automatically transferred from other registers to the PPSR so you may have expiring PPSR security interests without realising it.
If the registration is not renewed before expiry, the security interest will be lost. Although you might be able to register a replacement security interest, the process takes some time leaving you exposed during the process. However more importantly that security interest will rank behind prior registered interests.
To avoid becoming an unsecured creditor, you need to renew your registration before it expires. You can check for any registrations that are due to expire by generating a free report from the PPSR website.
It is recommended that you consider professional help if you require any assistance with implementing the following:
1. Determining whether you have any lapsing security interests;
2. Renewing and/or updating your security interests; or
3. Considering your security position generally in light of lapsed security interests.
For more information about how the Morrows Legal team can help you with your security position, contact Adam Neylon at firstname.lastname@example.org or call 9690 5700.