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PPSR

Personal Property Securities Register

The PPSA affects everyone, register to ensure your interests are protected

What is PPSA all about?

The Australian Personal Property Securities Act (2009) concerns itself with any instance where property (other than real estate property) is used as collateral in a security arrangement:

  • it establishes rules for determining the relative priority of competing security arrangements; and
  • it creates a national register for recording and viewing those security interests.

Who does the PPSA apply to?

The PPSA doesn’t just apply to those who take a more traditional security over others’ assets (such as a bank securitising a loan).

The PPSA will most likely apply if a supplier has any sort of claim to an Australian buyer’s assets to ensure payment obligations are honoured.

For example:

  • Selling goods on retention of title terms;
  • Supplying goods to a retailer to be sold on the supplier’s behalf;
  • Long-term leasing arrangements etc.
To download your free copy of NCI’s PPSA Guide, Click Here

What are the benefits of registration?

If a supplier does not register, they will find that someone else’s claim to the same assets will rank ahead of theirs. If registered, particularly for the supplier of inventory items, it will likely give that supplier a ‘super priority’ over and above the security interests of other creditors.

In insolvency situations, registration will ensure a supplier is treated as a secured creditor. Failure to register will likely ensure a supplier’s security interest is relegated to the ‘bottom of the heap’.

Registration on the PPSR will also flag to administrators, receivers and liquidators that the supplier will need to be contacted on their appointment.

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How do suppliers register?

First of all, accuracy is crucial. While the register doesn’t require a great deal of information, what is provided must be accurate – nowhere more so than in identifying the buyer (or, in PPSA terminology, the Grantor).

NCI can help in performing a Debtor Wash exercise, taking information from the supplier’s aged trial balance and not only running it through our own extensive database, but also comparing it to data from ASIC and the Australian Business Register ensuring legal entities are correctly identified. Many suppliers, for example, only hold details of their buyers’ ABN numbers; however, where the buyer/grantor is a company, the ACN must be provided for the registration to be valid.

Registration on the PPSR may be done via the Government’s own web channel, www.ppsr.gov.au. As this channel has been designed to accommodate registration of anything from Hoon liens to consumer credit, from hire purchase agreements to structured equity loans it is not as straightforward as it could be for a supplier simply wishing to register their Retention of Title clause.

How can NCI assist?

  1. NCI can help you identify exactly who you are dealing with. We will conduct a “debtor wash” of your aged trial balance to confirm correct legal entities. We provide you with a list of confirmed entities, and debtors we need to investigate further.
  2. Our compliance partners will review your terms and conditions / retention of title clause and provide suggestions and revised formats to ensure PPSA compliance.
  3. NCI has a link to the Register enabling us to conduct a bulk upload of all your security interests.
  4. NCI has a widely praised and easy to use system for registering new accounts on the PPSR and managing existing registrations. This is fully integrated into NCINet allowing you to register your interest or do this concurrently with your application for a new credit limit or NCI Credit Risk Management recommendation.
  5. NCI can act as your PPSA registration partner and alert you when registrations are due to expire or if a change is necessary. We will always have trained staff on-hand to help you through any of the more complex features of the PPSA.
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Can NCI register and manage existing registrations on it’s clients’ behalf?

As your authorised agent NCI will use its purpose-built Business to Government interface to register your security interests and maintain those registrations on NCI’s on-line system, NCINet – enabling you to see, at a glance, what registrations you have in place and identify any you might need us to amend or de-register on your behalf. We will also ensure you are kept abreast of all notifications generated by the PPSR.

Once we have the bulk of your security interests registered, you will be able to access NCINet, to lodge future registrations via NCI’s streamlined systems, tailor made to meet your specific needs.

To download your free copy of NCI’s PPSA Guide, Click Here