The Australian Government’s Personal Property Securities Register (PPSR)  will commence operation on 30 January 2012, providing people with a way of checking whether the goods they are buying have a security interest over them—such as cars, boats or machinery—almost anything except real estate. The PPSR will replace 40 registers and 70 laws around Australia.

 

PPS reform will introduce a national commercial law that will affect secured financing involving personal property. It will bring the different Commonwealth, State and Territory laws and registers regarding personal property security interests under one national system and introduce a single national online Personal Property Securities Register. The aim of the PPS reform is to improve the ability of individuals and businesses, particularly small-to-medium size businesses, to use all their property in raising capital.

 

Personal property is any form of property other than land, buildings or fixtures which form a part of that land. It can include tangibles such as cars, art, machinery and crops; as well as intangibles such as intellectual property and contract rights.

 

A personal property security is when a secured party takes an interest in personal property as security for a loan or other obligation, or enters into a transaction that involves the supply of secured finance.

 

An example is when a person borrows money from a bank and offers it as collateral or security for the loan. The bank’s interest over the collateral is a personal property security.

 

More information is available on the Personal property securities –key concepts fact sheet and the Enforcement of security interests fact sheet.

 

More information is at http://www.ppsr.gov.au