Personal Property Securities Act 2009 (Cth)

A new regime

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New RegimeThe 6 elements of the new regime:

1. Security Interest2. Collateral3. Attachment4. Enforceability5. Perfection6. Enforcement

Security InterestA “Security Interest” is:

an interest in relation to personal property provided for by a transaction that secures the payment or performance of an obligation

Deemed Security Interests The interest of a transferee in an account or chattel paper The interest of a consignor who delivers goods to a consignee under a consignment The interests of a lessor or bailor of goods under a PPS lease

Lessons to be learned from New Zealand

Graham v Portacom New Zealand Limited (2004) 10 TCLR 983

Lessons to be learned from New Zealand

Waller v New Zealand Bloodstock Limited [2006] 2 NZLR 629

CollateralThe personal property to which the “security interest”

applies, for the purpose of securing the payment or performance of an obligation, is called the “collateral”

Secured Party Grantor

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Collateral

AttachmentA security interest attaches to collateral when:

the grantor has rights in the collateral, or the power to transfer rights in the collateral to the secured party; and

either:-the secured party gives some value for the security interest; or-the grantor does an act by which the security interest arises

EnforceabilityA security interest is enforceable against a third party in respect of collateral if: the security interest is attached to the collateral; and:

the secured party possesses the collateral; the secured party has control of collateral; or the parties have entered into a security

agreement.

PriorityPriority, the general position is: a “perfected” security interest has priority over

an unperfected security interest

Priority between perfected interests in determined on a first-in-time basis

priority between unperfected interests is determined on a first-in-time basis

Exception to Priority: PMSIsPurchase Money Security Interest – the Super Priority

Include:- a security interest in collateral where securing all or

part of the purchase price - an interest under a PPS Lease

- an interest under a commercial consignment

The scary law part

PPSA & Real Estate

Abandoned goods under leases -

Security over Tenant’s fitout

Landlord contributions

Lease of fitted out premises

Security Deposits

The RegisterITSA estimated volumes of register activity per year

Registrations 1.1 million Amendments 0.25 million Cancellations 1 million Searches 6 million

How redchip can help

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