Commercial Law Gold Coast update – Personal Property Securities Register
On 31 January 2014, the transitional period to allow people to register a security interest over personal property under the Personal Property Securities Act 2099 (“the Act”) will end. Personal property includes machinery, cars, boats, crops, livestock and equipment but excludes real property, buildings and fixtures.
The Act brought about a vast change in the registration of security interests in personal property which includes the registration of what was previously referred to as a Charge over a company for a debt owed by the company over particular goods or items.
If you supply goods on the basis that you retain ownership in them until the full purchase price is paid or you lease goods to a customer, you may have a security interest in the goods that needs to be registered to protect you. If you fail to register the interest, you are at risk of not protecting yourself against a non-paying customer or one that becomes bankrupt or insolvent.
If people fail to register the interest prior to 31 January 2014, they risk losing their priority to the personal property in question. This permits any other party who claims to have an interest in the goods registering that interest and it will have priority over your unregistered interest. Further, failing to register a security interest may result in the residual owner not being made aware the goods are being sold by and losing the ability to recover the goods after they have been sold.
If you believe you may have a security interest that has not been registered, come and see one of our Commercial Lawyers. We can review your documentation and provide you with advice as to your legal position.