2. The main impact of the PPSA is in insolvency. The first thing a liquidator, administrator or bankruptcy trustee will do when appointed is search the PPSR for relevant registrations. 4. In most appointments of liquidators or bankruptcy trustees, unsecured creditors will either receive nothing or very few cents in the dollar. Therefore, if you propose to offer funds or goods to a person or entity, securing the obligation should be the first thing on your mind.
In February 2020 I delivered a now annual seminar providing an update on recent PPSA developments at the Leo Cussen Institute. The seminar covered three interesting recent cases: Bluewaters Power 1 Pty Ltd v The Griffin Coal Mining Company Pty Ltd WASC 438 (Bluewaters) BMW Australia Finance Limited […]
I recently presented a paper to Leo Cussens during a half day PPSA conference on the topic recent developments in the PPSA. A full copy of the paper can be found at this link: Leo Cussens – PPSA – 23.5.19 The PPSA is relatively new (for a law […]
The PPSR is Ripe for abuse One of the weaknesses of the Personal Property Security Register (PPSR) is that anyone can go online and lodge a registration for a few dollars in fees by claiming to hold a “security interest” in respect of the personal property of another, […]
A QUESTIONABLE PRACTICE: PPS vesting provisions on appointment do not extinguish a financier’s perfected interest in leased equipment on the PPSR.
This post deals with the extent to which a financier’s security interest is really affected by the vesting provision, section 267, in the PPSA. There is a current practice of letters being dispatched to the holders of any unperfected security interests in leased equipment, claiming vesting of all interest in the collateral in issue, without regard to upstream financier’s interests. The fact is that there are good arguments that the financier’s interest is not affected, even if the owner of the equipment who has provided the lease may lose its interest because of vesting.
The courts continue to hammer out the meaning of various basic provisions of the PPSA. The decision in Forge Group Power Pty Limited (in liquidation)(receivers and managers appointed) v General Electric International Inc  NSWSC 52 looked at two issues dealing with the reach of the PPSA to […]
Sandhurst Golf Estates Pty Ltd v Coppersmith Pty Ltd  VSC 217 Initial registration of a financing statement on the PPSR is very easy. You simply go to the Personal Property Securities Register (PPSR) website and follow the links, enter the prescribed data, pay a small fee […]
When is a defect in a PPSR registration fatal? A defect in the ACN of the secured party not misleading
Case Note – Future Revelation Ltd v Medica Radiology & Nuclear Medicine Pty Ltd  NSWSC 1741 It is often the case that an error is made in the ACN, ABN or even name of a party, or in the serial number of collateral, when registering on the […]
Re Weston Application; Employers Mutual Indemnity (Workers Compensation) Ltd v Omni Corporation Pty Ltd  NSWSC 264 In insolvency law the calculation of precise periods of time is important. Insolvency practitioners need to know exactly when limitation periods end in order to preserve potential claims. The “relation back period” […]
Last year I added a post (see http://wp.me/p1UOHK-5y) referring to a clear, brief summary of the requirements for setting aside a demand, set out in the decision in Elite Catering Equipment Pty Ltd v Seroshtan  VSC 241(link). Another recent case following the same line of reasoning is […]
The Supreme Court of NSW has decided a PPSA priority contest against the owner of leased Caterpillar equipment, in a fight with the receivers and managers of the equipment’s insolvent lessee. The case is a warning to those used to ownership and title retention based forms of security. […]
A recent decision of Justice Ferguson of the Supreme Court of Victoria is worth reading by practitioners defending or making applications to set aside statutory demands under s459G of the Corporations Act 2001. The decision is Elite Catering Equipment Pty Ltd v Seroshtan  VSC 241(link), an appeal […]