In January 2019, security interests which were originally registered on the Personal Property Securities Register upon the commencement of the Personal Property Securities Act 2009 (Cth) (PPSA) for a period of seven years will expire.
If your business registered seven year security interests on the commencement of the PPSA in January 2012 and the security interest is still current, you should seek to renew those registrations to ensure that they do not lapse. If the registrations are not renewed, there is a high risk that you will become an unsecured creditor.
Importantly, the PPSR only allows businesses to renew a registration before its expiry date. For example, if a security interest expires on 30 January 2019, it cannot be renewed after 30 January 2019. In such circumstances, the secured party will be left with a lapsed interest in the personal property.
To inform secured parties ahead of time, the PPSR publishes a ‘Registrations Due to Expire’ report which sets out current security interests due for expiry in the near future. This can be obtained through the PPSR website via a registered PPSR account and using the details of the secured party.
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