Can you believe it’s already been 7 years since the Personal Property Securities Act 2009 (Cth) (PPSA) was introduced to plague equipment financiers and lessors everywhere?
In actual fact it’s been more than 7 years since the PPSA received assent but it officially commenced on 30 January 2012 and most business would have begun making registrations on the Personal Properties Securities Register (PPSR) on or about this time. This means that a number of registrations will be coming up for renewal very soon.
The PPSA offers secured parties three different levels of registration fee based on three different durations of registration, being:
- 7 years or less; or
- More than 7 years but less than 25 years; or
- No stated end time.
The 7 year time frame, being the longest duration at the lowest price, is often the chosen time frame for securities in respect of short term loans, equipment rentals and other short term transactions. It is also the maximum time frame for all registrations over serial numbered goods, such as motor vehicles, aircrafts, watercrafts, trademarks, patents and designs, and plant breeders rights.
If you, or someone on your behalf, made a registration that commenced on 30 January 2012, whether by choice or by migration from another register, it is possible that the registration could expire on 30 January 2019 unless you take action to renew it.
Generally, it is important that secured parties give clear instructions to their agents and take note of the periods of their registrations. We would caution any secured party from relying on an agent to remind them when a registration will expire. Secured parties should take this opportunity to check the status of their registrations and extend or renew their registrations if needed.
To extend or renew a registration, it is as simple as logging on to the PPSR using your registration number and token (password), making the change online and paying the relevant fee. If you have misplaced your registration token, you should take note of the time it may take to request a replacement.
It is important to note that a registration cannot be extended or renewed once it has expired. Any new registration made after the expiry of a registration will only take priority from the date on which the new registration is made, potentially resulting in the secured party losing priority to another secured party already on the register.