PPSA - The Final Countdown?
Registration commencement time (RCT) announced under the Personal Property Securities Act 2009 (PPSA)
The start of the PPSA has been much delayed, having most recently been deferred to 31 October 2011, a date which then had to be abandoned because of IT problems in the design of the new PPS register. The Government even amended the PPSA to allow deferrals beyond the default RCT date of 1 February 2012.
On 21 November 2011 the Government announced that the RCT will be 30 January 2012.
The Government appears confident the IT problems are behind it. The RCT is the critical date under the PPSA. In effect the RCT 'switches on' the new regime and brings with it the biggest changes ever in Australia's commercial law.
Businesses that rely on 'security interests' including not just mortgages and charges but also leases and hires of equipment, retention of title and consignment sale arrangements and other 'security interests' should note:
- whilst temporary transitional protection is available for security interests arising under pre-RCT agreements, there is no transitional protection for new agreements struck after the RCT.
- businesses need to have an understanding of PPSA and the PPS Register to ensure that their position is protected. PPSA is complex. Time is now running very short for those businesses who have not already 'started the journey'. For those businesses that have not reviewed their terms of trade, lease or security documents, that should be commenced as a priority.
Bartier Perry has already assisted numerous businesses across a wide range of industry sectors to prepare for PPSA.
Author: Oliver Shtein