By Hayley Hitch, Principal at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group
PPSR…What is it? What does it stand for? How can it benefit you?
PPSR stands for Personal Property Securities Register. It is a register that records security interests granted to certain entities or individuals, and attaches a level of priority to each of the interests of those secured creditors.
A security interest is granted predominantly through a security agreement executed by 2 parties – a grantor and a secured party. A grantor is the party granting the security interest in an asset (whether existing, such as plant and equipment, or anticipated, such as proceeds of sale). The secured party receives the security interest in exchange for providing a service or promise of some form (such as advancing funds, providing goods on credit, etc.).
Upon registering an interest on the PPS Register, a specific date and time is attached to the registration which provides the secured party’s level of priority against other secured creditor’s interests.
Having a valid PPS registration can allow a creditor to recover its goods or debts owed subject to those goods with priority over other creditors of the debtor.
Our firm regularly acts for creditors to provide them with a secured creditor status and crystallise their security by registering on the PPS Register. We also enforce such PPS registrations to successfully recover amounts owed to our clients, which ultimately saves our client’s significant costs of taking alternative methods for debt collection, such as court proceedings.
However, there are risks when registering a security interest on the PPSR. A PPS registration contains many technical requirements which, if not complied with can easily result in a registration containing a defect and ultimately being invalid. If a PPS registration is invalid, the creditor may be unable to correct the registration and lodging a new registration will remove the priority the creditor may have obtained from its previous registration. Therefore, it is imperative that any such registrations are lodged correctly and advice is obtained to ensure such protection is afforded to a creditor.
Matthews Folbigg can help protect your interests and assist with your PPS needs
Should you wish to consider obtaining greater protection to recover amounts owed to you, and would like to consider PPS protection, Matthews Folbigg can assist you.
If you would like more information or advice in relation to insolvency, restructuring or debt recovery law, contact a Principal of the Matthews Folbigg Insolvency, Restructuring & Debt Recovery Group:
Chairman
