PERSONAL PROPERTY SECURITIES ACT 2009 ARE YOUR BUSINESS ASSETS AT RISK??

There are currently over 70 pieces of legislation in Australia dealing with securities, not to mention a huge catalogue of case law. All this will change on 31 October, 2011 when the Government rolls out the Personal Property Securities Act 2009. All securities, including some that are not currently registerable, will have to be registered on the online Personal Property Securities Register to ensure your interests are protected. Charges will no longer be registered with ASIC. The mechanism for registering charges on the Register has not yet been publicised but the types of charges to be registered will include: fixed and floating charges, chattel mortgages, conditional sale agreements (including Retention of Title charges), hire purchase agreements, consignments, assignments or transfers of title, bills of sale and certain financial instruments. What are the implications for you? Lessors of assets will find themselves particularly at risk in a way that they have not faced previously. If your business leases a piece of equipment to a customer who then becomes insolvent, you may find yourself in a position where you lose your rights in that equipment to a liquidator or trustee if you have not registered your interest on the Register. What you need to do It is vital that all businesses investigate whether or not your lease agreements, and other commercial securities and charges, will be impacted by this legislation and ensure that there are proper procedures in place to ensure compliance with the requirements. Failure to be prepared for this new legislation could have serious implications for your business. For more information

redchip has put together a number of resources to help our clients through the transition phase of this new legislation. If you are concerned or wish to obtain further information please contact any of our PPSA team, Toni Perkins or Angela Laylee on 3852 5055 for a confidential and obligation free discussion. redmails are a service to clients and associates of redchip lawyers. If you do not wish to receive the service, just reply to the senders email address and write delete in the subject line.