A security interest is an interest in personal property that secures payment or the performance of an obligation subject to a security agreement or a contract between the parties.
The Personal Property Securities Act 2009 (Cth) (“PPSA”) came into force on 30 January 2012 and created the Personal Property Securities Register (“PPSR”) which is a single register for security interests in personal property.
A security interest can be granted over most tangible and intangible non-land property and are particularly important for businesses that lease or hire goods or offer goods or services on credit or delayed settlement.
The PPSA created new concepts of attachment and perfection which can defeat claims of title or ownership. Following these changes, the owner of an item of personal property who fails to protect their interests under the PPSA may lose title in that property if they lend it to a borrower who goes bankrupt. Under the PPSA, all property in the possession or control of the borrower at the time of insolvency vests in the liquidator, administrator or trustee in bankruptcy. If the security interest in the personal property is not adequately protected it will be included in the assets to be distributed in insolvency.
- identification of security interests
- registration of security interests
- discharge of security interests
- priority of interests under liquidation/ receivership or voluntary administration
- selling, altering, damaging or changing property subject to a security interest
- enforcing a security interest
- drafting general security agreements
- assistance in registering and managing security interests
Please contact Stone Group Lawyers today on (07) 5635 0180 for a free 30 minute consultation to discuss your personal property matters.