Personal Property Securities Act 2009

The Personal Property Securities Act 2009 (Cth) ("PPSA") will have a significant impact on the taking, registration and enforcement of security over almost all kinds of property, except land.

The PPSA overturns fundamental property law concepts including the long held concept of legal title.  A complex set of rules will now govern the enforceability of security interests.

The PPSA commencement date is set for 30 January 2012 (after a number of false starts) and will affect a great many businesses in Australia.

How may the PPSA affect you?

• Fixed and floating charges – your existing charges registered with ASIC will be "migrated" to the PPSA Register ("PPSR") – a single national internet-based register available 24/7. The concept of fixed and floating charges will be replaced under the PPSA by "security interests over non-circulating assets" and "security interests over circulating assets" respectively.
• Retention of title ("ROT") – any supply of goods by you under a contract/purchase order that contains a ROT clause will need to be reviewed and may require registration as a purchase money security interest ("PMSI"). Under the current system goods supplied under an ROT may be retrieved by you on the insolvency of the receiver of the goods. Under PPSA, unless you as the ROT supplier register a PMSI as a security interest on the PPSR, the goods under ROT may become the property of the counterparty in liquidation and amount to a windfall for any creditors.
• Equipment hire – any equipment lease of more than 12 months may require registration in order to protect the interest which you have in the equipment.
• Serial numbered goods – any lease of serial numbered goods (eg motor vehicles etc) of more than 90 days may require registration in order to protect the interest which you have in the goods.
• Joint venture agreements – interests arising under cross charges and some default clauses in joint venture agreements will fall inside the PPSA regime and will need to be reviewed. In particular, new cross charges will require specific drafting changes to deal with the changes introduced by the PPSA.
• Other considerations – hire purchase agreements, conditional sale agreements, transfers of accounts receivables, confidentiality obligations (amongst others) will also be affected.

Motor Dealers

• A single search of the PPS Register will provide national information so you will be able to find out whether there is any registered debt or other interest in a vehicle in any state or territory in Australia.

• A search of the PPS Register will also create a request for vehicle information from the National Exchange of Vehicle and Driver Information System - NEVDIS.  Depending on the information NEVDIS holds, this will include written off and stolen status information in addition to make, model, colour and other information. Note that there will be no provision for searching or registering an interest by plate or engine number on the PPS Register.  The correct VIN or chassis number depending on the vehicle is essential when making a registration and searching on the national PPS Register because failure to use the correct number will result in an ineffective registration and inability to find the registration on the PPS Register. 

This article has been provided by Cars and Finance Direct ©

Cars and Finance Direct Blog: Getting the money to buy big ticket items in Austr...

Cars and Finance Direct Blog: Getting the money to buy big ticket items in Austr...: Getting the money to buy big ticket items in Australia – does the new regime improve the process in the Finance Broker market. When it is...

Getting the money to buy big ticket items in Australia

Getting the money to buy big ticket items in Australia – does the new regime improve the process in the Finance Broker market.


When it is time for a new car, boat, motor bike, truck, caravan or perhaps a second car for the family, or a surprise for that newly licensed member of the family! just where do you get the money quickly and without hassle? Save, beg, borrow or steal? Steal is not recommended, unless you want a correctional facility based stay over.
For most of us its BORROW. There are of course the traditional lenders – Banks, Building Societies, Credit Unions, family and friends, maybe even the Boss, but increasingly Borrowers are turning to Finance Brokers for assistance. Why? Because time is becoming more precious and most of us just don’t have enough of it to go round and Finance Brokers generally offer a comprehensive service and can often organise insurance to protect the new property and also loan protection insurance to protect the borrower.
So not only does the prospective borrower save precious time, but also benefits from expert advice and market knowledge. Simple really, it’s a win win situation. The Borrower gets that all important car loan or finance package and the Broker gets a new client and a potential referral source of business.
Consumers have never had a better safety net when it comes to choosing a Broker. All Brokers are now either Licensed or authorised under the National Credit Code.

What does this mean for the Consumer? More paper work to study...absolutely.
In todays financial market the consumer gets – A Credit Guide, A quote for services, a proposal and can also get access to the Brokers and or Lenders assessment of the credit application. Borrowers can now also take their case to an External Disputes Resolution Service if they are dissatisfied with the conduct of their broker.
The Credit Guide Provides the Consumer with detailed information about the Broker, including the Lenders used, details of how to complain.
Brokers can organise loans for both clear and credit impaired borrowers whose circumstances don’t meet traditional lending requirements. The loan product range is broad and caters for the needs of people who are self-employed, those on a salary or wage and small business. Brokers offer all types of finance for many needs. These needs can be for cars, houses, business, commercial, leisure, capital, development, marine and investment. The lending source often depends on the client profile and history. Prime lenders will only focus on those with a solid credit history and asset portfolio, while others are more understanding to some of the curve balls’ that life can throw.
The Broker advantage is often that business relationship with both style of lender.

After 14 years in the business of helping every day Aussies Businesses in Brisbane and Queensland sell and finance cars, bikes and boats, Ladbroke Financial Services have opened a Melbourne based branch. The Melbourne Branch is under the control of Frank Zoccali, Mob 0466 887 198 who will be only too happy to assist you advertise and sell your Cars through our FREE web based Car Locator Service. We can then organize the Finance and Insurance for the clients in a seamless transaction that gives you better control of the Sale and the outcome. When your client has had a few credit problems don’t despair. We have access to Private Funds that will have the Car over your kerb in the quickest possible time. Even better when you can help a client when everyone else tells them they can’t help you gain a loyal client and a valuable referral source of future business