Top Things to Know About the Personal Property Securities Act 2009
The key concept of the Personal Property Securities Act 2009 in Australia is legislation that was introduced in relation to safeguarding of personal property. This is the first law to take part in pr...
This Australian law legislation came into effect on Monday, January 30th of this year. This new law legislation will involve most secured loans, chattel mortgages, hire purchase; leases exceeding a year, and any retention of titles in relation to personal property.
Individuals and businesses have exactly two years (24 months) from the commencement date of the Personal Property Securities Act to register any existing securities. Any securities that are unregistered will have fewer priorities compared to those of competing interests.
Title arrangements with contractual retentions will no longer be valid but they have to be “perfect” security interests. Now if a company goes into liquidation any un-perfected securities will be subjected to all registered security interests. An unregistered creditor loses their priority status and may be demoted down to an unsecured creditor status.
If money is owed against chattels and other types of asset then the next step in to make sure their securities are officially protected. If the business supplies goods that are on credit are subjected to retention of title provisions then they are considered worthless unless it has been “perfected” by PPRS Act registration.
Finally if the person or business plans to buy any property or advance money against the property then they need to search through the new registration to make sure the property has not already gone through the perfection registration.
Additional important terms to know related to the Personal Properties Securities Act of 2009:
PPSR stands for Personal Property Securities Register that has all of the data regarding personal properties. It lists all of the properties and their status.
Personal Properties are referred to properties you own such as tangible assets which can range from tools, livestock, crops, and instruments.
Personal Properties Security Act that have been decided upon you as the owner through individual or business used as collateral to secure a loan. So if you fail to pay the loan then the property will be used as collateral to make up any differences. This is a new law that was created in Australia and this law was also introduced into other countries such as Canada. Canada and the United States were the first countries who took on this new law for their country. The main idea of introducing this law is to create a new set of laws and regulations regarding securities while there are some distinct differences between the laws in different territories and states.
Perfection is possession of the collateral when a lender decides to take action on the security interests under the agreement terms. However, the lender may not seize the property at the conclusion of the contract. If the lender plans to end the contract then they first need to give a warning before doing that. Collateral is another name for security. So if a person or business puts something that is valuable up for securing their loan then this is recognized as collateral. Secure Loan is a financial term for a loan that is secured when using valuable personal property.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
At http://www.ppssolutions.com.au/ ,the specially designed and secure web-based software solution will assist you to easily register in personal property security register to maintain your security interests and enable you to easily manage your personal properties securities act activities and document