×

If You Provide Credit to Customers in your Business You Must Read This

The Attorney-General has announced that the Registration Commencement Time for the Personal Property Securities Act (“PPSA”) will be 30 January, 2012.

Under the PPSA, all securities, including some that are not currently registrable (such as retention of title clauses) will have to be registered on the online Personal Property Securities Register to ensure your interests are protected.


Charges will no longer be registered with ASIC. The mechanism for registering charges on the Register has not yet been publicised but the types of charges to be registered will include: fixed and floating charges, chattel mortgages, conditional sale agreements, retention of title clauses, hire purchase agreements, consignments, assignments or transfers of title, bills of sale and certain financial instruments.

What are the implications for you?

If you –

  1. provide credit as part of your terms of trade and seek to rely on a retention of title clause; and/or
  2. lease, lend or rent goods,

then YOU ARE AT RISK in a way that YOU have not previously faced.

To illustrate the point – If your business leases a piece of equipment to a customer who then becomes insolvent, you may find yourself in a position where you lose your rights in that equipment to a liquidator or trustee if you have not registered your interest on the Register.

What you need to do

It is vital that all businesses investigate whether or not your lease agreements, and other commercial securities and charges, will be impacted by the PPSA and ensure that there are proper procedures in place to ensure compliance with its requirements.

Failure to be prepared for this new legislation could have serious implications for your business. Therefore, you need to investigate whether or not you will be impacted by this legislation and put proper procedures in place to ensure compliance with the requirements.

For more information

Redchip has developed a number of resources to help our clients through the transition phase of this new legislation, including self assessment check lists.
If you are concerned or wish to obtain further information please contact Rob Lalor from our PPSA team on 07 3223 6100 for a confidential and obligation-free discussion.

Back to Articles
Redchip

Recent Articles

kaitlyn-baker-vZJdYl5JVXY-unsplash (1)
It’s official – Electronic Signing for Companies is here to stay!

Thankfully, on 22 February 2022, the Corporations Amendment (Meetings and Documents) Act 2022 (Cth) (the Act) received assent, amending the Corporations Act 2001 (Cth) (Corporations Act). This legislation clarifies and makes permanent the temporary relief measures which had in place 2020. The Act establishes a permanent mechanism which allows for: The electronic execution of documents […]

Read more
Untitled design
Who is responsible to repair damage following a natural disaster?

1. Rent Abatement In most cases, a lease will contain a clause whereby the tenant’s obligation to pay rent and other money under the lease (such as outgoings) is abated (either partially or completely) while the Premises are inaccessible or incapable of being occupied. 2. Reinstatement The Lease may contain specific obligations on the Landlord […]

Read more
pexels-nothing-ahead-4502492
Significant Changes to Residential Contracts

What are the changes?   Extension of Settlement Date Recently, there have been media reports of buyers losing their deposits because of a failure of their financial institutions to be able to settle on the settlement date. This change allows for either party to extend settlement date by up to 5 business days from the […]

Read more