By Glen Giles, Taylor Smart, Lawyers, Perth.
31 January 2014 marks the deadline for lenders and chargees to find and claim any registered security interests that may have been migrated from the defunct Commonwealth, State and Territory registers to the Personal Properties Securities Register (PPSR).
In the lead up to 30 January 2012, some 23 Commonwealth, State and Territory Registers were effectively abolished, and all of the instruments registered on them were migrated to the PPSR which became a single Federal Register for personal property security interests from that date onwards. This included the ASIC register of company charges.
Fixed and floating charges may have become a thing of the past for all new funding and security arrangements, but it is essential that you take action now to preserve your rights under any pre-PPSR security instrument which you may have which you may still be relying on.
Pursuant to the legislation, the holders of these security interests have until 31 January 2014 to find and claim these migrated registrations in order to preserve the priority of the security interests granted. Such priority may be lost to subsequently registered and perfected instruments if action is not taken by 31 January 2014.
The ‘find and claim’ process is relatively straightforward, once you know your way around the PPSR. We are happy to assist you with this process and can offer advice with respect to the current registrations that you may have and future registrations that you may want to register.
For more information on PPSR and how it could affect your business, click here.