Businesses need to register by 29 January 2014 to obtain the benefit of the “Transitional Perfection” protection under the Personal Property Security Act.
If your business has interests created prior to 30 January 2012 under:
- leasing and hire arrangements (eg if you are the lessor of equipment);
- retention of title supplies (eg if you are the supplier of the goods); and
- certain commercial consignment arrangements (in which you give possession of your goods to another party)
failure to register by this crucial date will leave your business vulnerable to losing its rights to the goods:
- to other secured parties who have registered their interests; or
- where the person or company in possession of the goods becomes insolvent.
We have advised many businesses on whether they need to take advantage of the new PPSA – for many they do not, but for those that should register, the failure to register can be a very expensive oversight/mistake.
If you are not sure whether you need to register and whether there is any advantage to your business in registering before 29 January 2014, we are happy to speak with you by telephone to provide a preliminary advice. Given the fast approaching end of year break, any businesses interested in this should contact us soon so that they can register before the end of the year if it is decided to do so.
If you wish to discuss this, please contact Craig Healy or Paul Hesse.