The introduction of the Personal Property Securities Regime (PPS Regime) which was scheduled to commence on 31 October 2011 has now been deferred, at least to 30 January 2012. What's more, legislation introduced into Parliament last week may see this introduction pushed further still, past January, to a later and yet to be determined date.
The PPS Regime will have a far reaching affect on dealings with various forms of personal property.
A briefing note has been prepared on the practical application of the PPS Regime to businesses involved in selling or financing goods and some useful Q&A on how to prepare for its introduction.
The Regime applies to all "security interests" in both tangible and intangible personal property and includes as classes of "collateral" goods such as motor vehicles and watercraft.
"Security interests" are created or provided for by a transaction that in substance secures payment or performance of an obligation.
Importantly, the concept of title is irrelevant for PPS purposes. "Perfection" of security interests, primarily by registration, will be critical.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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