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.