The Personal Property Securities Act 2009 (Cth) commenced on 30 January 2012 and created a national online register where details of security interests in personal property can be registered and searched.
The single register is known as the Personal Property Securities Register (PPSR).
The single register known as the Personal Property Securities Register (PPSR), replaced over 70 registers throughout Australia including the Australian and Security Investments Commission (ASIC) Register of Company Charges, state and territory bills of sale registers and registers of encumbered vehicles.
Businesses and consumers should be aware of the benefits the PPSR offers to them. Businesses are able to register their security interests over personal property to show their rights which secure a debt or obligation which is owed to them. Registration on the PPSR protects their interest against a customer’s insolvency and preserves their priority position against other businesses or lenders. Alternatively, the PPSR allows consumers to check the register to determine if an interest is registered over any personal property they may be proposing to buy or lease.
Registration on the PPSR requires a determination of the collateral type and the collateral class. The PPSR separates collateral type into two categories of commercial or consumer, and the collateral class into four categories of tangible property, general property, intangible property and financial property. Each collateral class subsequently contains a number of sub-classes to provide a further description of the property the security interest will be registered over.