Personal Property Security Claims
Don’t be at the end of the line as an unsecured creditor. Obtain advice now to ensure that your assets, loan or monies are secured via the
Personal Property Securities Register (PPSR).
The PPSR was introduced in 2012 and it is a vital and essential method of securing your assets, loans or money. Businesses register their credit
interest with the PPSR to avoid losing money that is owed to them in the event that a debtor company becomes insolvent.
Companies that fail to review all of their security documentation or fail to register their interest risk forfeiting money that is owed to them.
Companies need to adopt the following procedures to ensure their monies are secured:
- Review your group structure, asset protection strategy and inter-entity arrangements and have security interests registered with the PPSR.
- Review your business’s governing documents (partnership agreements, succession agreements and/or company constitutions) and update them
if necessary to ensure that any security interest created under them is registered with the PPSR.
- Identify assets affected and transactions that need to be registered.
- Review the terms and conditions in the contract documentation in relation to retention of title clauses, personal guarantees, charging clauses
and any other security interests.
The PPSR can be used in any agreements involving the security of money, including the concept of a “fixed and floating charge”.
Registering your security interests is vital in ensuring that you can get your money back and can secure assets, putting you ahead of the queue
of unsecured creditors in the event of debtor insolvency.
Streeterlaw can provide you with the tools to assist you and your company develop processes.
The PPSR covers consumers, organisations, financiers and service providers and can be used for material items from boats, caravans, cars, inventory,
plant and machinery and
shares to accounts, intellectual property, investment instruments or licences. Contact the Streeterlaw securities team to obtain advice now.