Mar 202012
 

REGISTRATION PROCEDURES UNDER THE PERSONAL PROPERTY SECURITIES REGISTER (PPS REGISTER)

The PPS Register seeks to cheaply, simply and efficiently provide a new register in which it is possible to both lodge and search for security interests over personal property. The scheme is designed to be easily accessible by the general public.

To protect a security interest under the PPSA, three steps must be taken:

1. Attachment

The security interest attaches to property in situations where:
a) the grantor has rights in the property; and
b) the secured party has given value, or the grantor has acted in a matter creating such an interest.

2. Enforcement

Security interests are enforceable when attachment has occurred and any of the following also exists:
a) a written agreement which describes the property; or
b) the secured party has possession; or
c) the secured party has control of the property.

3. Perfection

When the security interest is attached and enforceable, it is then able to be perfected if any one of the following takes place:
a) It is registered on the PPS Register; or
b) the secured party has possession; or
c) the secured party has control of the property.

The PPSA contains priority rules. First, perfected interests take priority and secondly, in the order of perfection. All the rules are contained within the PPSA, which intends to cover the field. Thus the common law and equitable principles are replaced.

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