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PPSA: If ever a form is worth filling in, it has to be this one

08 June 2016

It can be bought online for $7.40.

It will take about 10 minutes to fill out and its relevance to the Personal Property Securities Act (PPSA) can save the clients of accountants and solicitors a whole heap of dollars. And of course the clients’ lasting gratitude could prove very profitable.

Under section 267 of the PPSA, an unregistered security interest in goods is lost if the company in possession of the goods is placed into liquidation or administration.

Under sections 12 and 13 of the Act a lease or bailment of goods for an indefinite term is deemed to be a security interest. This means that if a company has a security interest in plant and machinery being used by another company and the plant and the security interest is not registered, the fact that they actually own the equipment is irrelevant under the Act.