January 2019 marks 7 years since the commencement of the Personal Property Securities Act 2009 (Cth) (PPSA) and the Personal Property Securities Register (PPSR).
From 31 January 2019, registrations that were undertaken on or around the commencement of the PPSR are at risk of expiring and may require renewal.
Compliance with registration renewal is critical in ensuring the priority of PPSA security interests. The PPSA provides for registration over three periods; 7 years or less; more than 7 years but less than 25 years, or no stated end time. The shorter registration period is ideal for those granting short term loans. Additionally, this period is the maximum allowed for registrations over ‘serial numbered goods’ such as motor vehicles, watercraft and intellectual property.
Extending your registration is a relatively simple process which involves logging onto the PPSR, amending the end date for the registration and payment of the relevant fee. It is important to remember that once a security interest registration has expired, it can not be renewed, and you will be required to re-register the security interest and risk losing priority to other creditors. Please take action before it is too late. 31 January 2019 is fast approaching!
An immediate audit of all of your PPSR security interests is highly recommended. It is best practice to contact any agents or representatives who assisted in the registration process to prompt them to check your security end date and ensure all necessary renewals are completed in a timely fashion.
Gavin Parsons and Associates can assist you with any questions you have regarding your securities registered on the PPSR. Contact us on (02) 9262 4471 for a free no obligation consultation today.