On 10 May 2011 the Senate passed the last Bill amending the Personal Property Securities Act 2010 and the Corporations Act 2001 under the PPS regime.

 

The Personal Property Securities (Corporations and Other Amendments) Bill 2011 was the final set of amendments to the Personal Property Securities Act (PPS Act) and consequential amendments prior to the Personal Property Securities (PPS) regime coming into effect later this year (1 October 2011).

 

The PPS Act, which was passed by the Federal Parliament in 2009, created one national law with one set of rules governing interests in property other than land that secure debts or other obligations, with the aim of simplifying over 70 Commonwealth, state and territory laws, and common law governing security interests in personal property. It replaces many registers of personal property security interests that complement these state and territory acts, with the one PPS Register.

 

What Changed?

 

Amendments, which were raised by stakeholders and practitioners, have been made to ensure all aspects of the regime are appropriate for users and take into account their particular business practices.

 

They include:

< Clarification of certain definitions;

< Correction of drafting errors;

< Insertion of operational provisions about the use of the PPS Register;

< Clarification that the intention of the regime is not to interfere with existing rights under the Corporations Act.

 

Corporations Act amendments include:

< Clarify references to registrable charges;

< Retain the existing liability of receivers and voluntary administrators for transactions entered into by the company before their appointment;

< Retain existing arrangements for the enforcement of liens and pledges;

< Clarify that the Bill does not affect a secured party’s capacity to appoint a company administrator under a transitional security agreement (or veto the appointment).

 

Personal Property Securities Act amendments include:

< Harmonise the definition of security interest with NZ law;

< Clarify the classification of property in the PPS Act;

< Ensure that secured parties of serial-numbered goods have the benefit of the 24 month transitional period where not currently registered by serial number.

 

We recommend review of your procedures with respect to registration of security interests in preparation of the regime commencement date of 1 October 2011.

 

For more assistance, contact Greg Young, Partner  Dispute Resolution & Litigation on 1300 369 581 or gregy@macgillivrays.com.au

 

¹Personal Property Securities (Corporations and Other Amendments) Bill 2011 (for more information see the Bills home page at: http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22legislation/billhome/r4516%22

²Extract from second reading speech

 

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PLEASE NOTE:  This newsletter is not legal advice and our comments are of a general nature only.  This document is not to be relied on as substitution for proper detailed advice. 

 

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