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 […]
Most business people know that they should shelter their assets by keeping them out of their own name, so that if they go bankrupt, those assets are not available to the trustee in bankruptcy. But it’s also important to make sure that the entities that control those assets […]
Imagine this very common scenario. Before attempting to recover a debt, a creditor learns of circumstances which give rise to a genuine dispute about part of it, but there is still some undisputed part left over. The creditor quite logically makes a demand for the undisputed part, knowing […]
Warning to lawyers and creditors serving Bankruptcy Notices: No direct evidence of posting? No effective service.
This is a warning to creditors (and lawyers acting for them) who don’t have direct evidence that their bankruptcy notice was taken to the post office or post box and mailed. You will probably not have effectively served your bankruptcy notice. Where direct evidence is lacking, the Court […]