PPS - are you ready?
The Personal Property Securities Act (PPSA) is expected to apply from February 2012. It will be one of the most significant reforms to commercial law in decades and will dramatically change core business practices for a wide-range of services and businesses.
Although the PPSA became law on 14 December 2009, the government recognised that a significant period was needed for affected parties to prepare for its application. Preparation is key for organisations as these significant, far-reaching changes will impact on the manner in which business is conducted in Australia.
The PPSA, the PPS Regulations and the register to be established under them will replace the myriad of existing Commonwealth, State and Territory laws and registers for company charges, bills of sale, ship mortgages, motor vehicle securities, crop liens, stock mortgages and most other securities affecting tangible and intangible personal property rights. For example, from the registration commencement time, company charges will no longer be registered with ASIC, but an electronic notice of the security interest will be recorded on the PPSR.
The PPSA will not only rationalise the number of laws and registers governing personal property securities, it will also introduce major substantive changes to the current law which will be particularly important for creditors, equipment lessors, consignors and other retention of title suppliers, purchasers of accounts receivable and insolvency practitioners.
Piper Alderman have been at the forefront of PPS legislative reform.
