Personal property securities

The Personal Property Securities Act 2009 (PPSA) and its regulations establish a comprehensive national regime governing security interests in personal property. This guidance note outlines the essential framework commercial lawyers must understand about the PPSA regime, including the operation of the Personal Property Securities Register (PPSR) and the legal intricacies involved in creating, perfecting, and enforcing security interests.

Topics Covered

• Significant proposed reforms to the PPSA regime
• The Personal Property Securities Register
• Determining whether the PPSA applies
• Security interests under the PPSA
• Enforceability of security interests against grantors
• Attachment of security interests
• Perfection of security interests
• Registering security interests on the PPSR
• Priority between security interests
• Enforcement of security interests
• Extinguishment of security interests
• Searching the PPSR

Essential Insights

• Assess the impact of recent statutory reviews and proposed reforms on the PPSA regime’s complexity and clarity.
• Understand the strategic importance of the PPSR as a centralized register for protecting security interests nationwide.
• Identify when the PPSA applies, including nuanced definitions of “personal property” and “security interests.”
• Recognise the critical distinctions between “in substance” and “deemed” security interests and their legal implications.
• Grasp the complexities of attachment and perfection—key steps affecting enforceability against grantors and third parties.
• Navigate priority rules, including how purchase money security interests may gain super-priority under specific conditions.
• Appreciate the procedural risks of late or incorrect PPSR registrations, including potential loss of security interests upon insolvency.
• Learn the strategic use of PPSR searches to uncover existing security interests, essential for informed commercial decision-making.