| Focus: | Attorney-General confirms PPSA commencement as 30 January 2012. |
| Services: | Commercial, Financial Services, Intellectual Property & Technology, Insurance, Property & Projects |
| Industry Focus: | Energy, Resources & Infrastructure, Financial Services, Insurance, Medical & Pharmaceutical, Property |
After signalling a possible delay of commencement of the Personal Property Securities Act ("PPSA") beyond 30 January 2012, the Attorney-General has now confirmed that:
- the Registration Commencement Time for the PPSA (the time from which financing statements can be registered under the PPSA) will be 30 January 2012, and
- the Migration Time (the time from which data from current registration systems for securities over personal property will be migrated to the Personal Property Securities Register under the PPSA) is 21 November 2011.
At the same time, the Senate Committee is still considering a bill which would allow the Attorney-General to defer commencement beyond 30 January, if technical issues affected the migration of existing data and the operation of the new Register. In their submission, the Attorney-General has said that they are still working towards 30 January 2012 but would like flexibility to deal with "the unforeseen".
While some businesses have slowed down their preparation because of uncertainty as to the start date, we recommend that you "gear up" for 30 January 2012. As things currently stand, all "security interests" arising, and "security agreements" made, on or after 30 January 2012, will be governed by the PPSA. This also contains transitional provisions for pre-existing interests.
Parties engaged in financing, taking security, selling or other dealings with personal property will need to ensure that their interests gain protection and priority. Agreements and trading terms must fit the framework of the PPSA, and business processes must support timely registration.
For more information on how the PPSA applies to your business, practical steps to prepare for its implementation and how to prioritise those actions, please contact a member of the DibbsBarker PPSA Team.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
