Personal Property Securities Act What have we learnt so far? T1300 RLS LEGAL...
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Transcript of Personal Property Securities Act What have we learnt so far? T1300 RLS LEGAL...
Personal Property Securities Act
What have we learnt so far?
T 1300 RLS LEGAL
W resultslegal.com.au
Presented by
Karl Hill | Managing Director
BRISBANE | SYDNEY | MELBOURNE
CANBERRA | ADELAIDE | PERTH
Introduction
Trade credit perspective
Rights of Rot creditors
PMSI’s
“All moneys clauses”
Processed and co-mingled
Hirers and lessors
Transitional provisions
Registration
TRADE CREDITORS’ RIGHTS
• Retention of title (RoT)
• Hirers and lessors of property
• Charges over personal property
Retention of title
“We’re not all that worried about PPS. The only impact to us is retention of title. We’re the owner of the goods anyway, so there won’t be any other security interest we need to compete with.
If anything, we’ll just register if we’re concerned that a debtor is going to end up in trouble.”
National credit manager, large corporate client
The good news
1. RoT claim is a ‘PMSI’ which
creates a ‘Super Priority’.
2. Greater rights in respect of
processed and co-mingled goods.
Hirers and lessors
PPSA catches hire or lease agreements if they are for:
(a)a term of a year or more;
(b)an indefinite term; or
(c)a term of up to a year that is automatically renewable.
Conclusion
Purpose – to formalise and clarify competing rights
Real –v– personal property
RoT creditors are amongst the potential winners
Transitional provisions
Have a clear plan in place for what and how to register (and if you
haven’t registered yet, do so)
Have your terms and conditions reviewed (if you haven’t already)