You have until 31 January to ensure that any transitional security interests are properly dealt with and perfected under the Personal Property Securities Act 2009.
What does it mean to have your security interests perfected?
Perfection of a security interest gives it priority over unperfected security interests in the collateral. A security interest may be perfected by registration, possession, or control. In certain circumstances, a security interest may only be temporarily perfected.
You can read more on the PPSR.gov website.
The most common way of perfecting a security interest is by registering the interest on the Personal Property Securities Register (the PPSR) which takes you through the process and steps required to take an effective security interest in personal property. One of the steps for a fully effective security interest is that the security interest is ‘perfected’ – this is the step that sets the priority of security interests against one another.
The PPSA commenced in January 2012, and a two-year transitional period applies under the PPSA for transitional security interests. The PPSA treats any security interest that was created under a security agreement prior to 30 January 2012 as having been ‘temporarily perfected’ for a period of two years.
The transitional period ends at midnight on 31 January 2014. This means that anyone with a transitional security interest that is not registered on the PPSR by 31 January 2014 can lose their priority ranking in the asset over which they have the security interest. The registration of a transitional security interest on the PPSR is free.
To learn more about why you need to register click here.
To learn more about how to register click here.
If you would like some assistance from the Azure Group team to ensure you have properly perfected your security interests please do not hesitate to call us on (02) 9238 1188 or email ourteam@azuregroup.com.au.
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