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Some PPSR Securities will expire soon

On 30 January 2019, it will have been 7 years since the commencement of the Personal Property Securities Act 2009 (Cth) on 30 January 2012.

Why is this important?

It is vitally important if your business registered a seven (7) year security interest on commencement of the Act and that security interest is still current.  If this is the case, the registration will lapse after seven (7) years and prior to lapsing will need to be renewed if you still intend to rely on the security registration.

Registrations for goods with a serial number, including motor vehicles, watercraft and aircraft as well as intangible property such as patents and trade marks, have a maximum registration period of 7 years.  This means any registrations over this type of property made on commencement will expire on 30 January 2019.

The consequence of an expired security interest can be particularly disadvantageous.  Where the security interest is not renewed, the security interest will lapse and any security in the property will be lost.

A renewal of a security interest must be made before the expiry of the security interest.  It cannot be renewed after expiry.

The Personal Property Security Register publishes a list of registrations that are due to expire, and this report can be obtained from their website.

If you haven’t checked the Register or are unsure about a registration lapsing, it’s worth getting some advice as the consequence of a lapsing security interest equals no security, full stop.