In our October 2013 edition of the Newsletter we summarised an important recent case on the issue of priorities and registration with regard to the Personal Properties Securities Act (‘PPSA’) and Personal Properties Securities Registrar (‘PPSR’). The purpose of this article is to alert readers that,
on the second anniversary of the introduction of the PPSR, the transitional period under the PPSA expired.
The transitional period under the PPSA provided protection for those transactions which were in place prior to 30 January, 2012 and were not required to be registered on the various statebased security registers that existed prior to the introduction of the PPSR. An example of such transaction could be a dry hire lease between two parties for civil earthmoving equipment. The transitional period temporarily perfected those transactions and ensured that existing transactions had the same priority as the security interests registered on the PPSR. This protection was removed after 31 January, 2014.
It is imperative for those readers who believe they may have some type of transitional security interest or transaction still on foot to ensure that their security interest is registered on the PPSR immediately. With the transitional period now expired, your security interest is not protected and not enforceable. Failure to register will mean losing out to another secured party.
Our experienced team of PPSR specialists would be more than happy to assist you with any enquiries you have in relation to the transitional period expiration so please do not hesitate to contact our office.
