Personal property security interests is a technical term to describe a security or a charge over anything but land (e.g. a car or bicycle). Personal property security could become an issue in a wide range of circumstances. It could arise from one person giving another person a security interest (e.g. a charge) over a personal asset (e.g. a car) to secure the performance of an obligation (e.g. repayment of a loan). It could also arise for instance, from a business supplying goods on credit, and the supply agreement contains a clause stating that the title to the goods would not pass until full payment is made.
In 2012, a new law has established a national register of personal securities (PPS Register) which records security interest registered over a certain personal property (a personal property is anything apart from land). Rights arising from a wide range of transactions must be registered on the PPS Register in order for it to be enforceable. If a security interest is not registered, the person who took security could lose out to other creditors or an appointed liquidator. A very informative business guide could be found on the Personal Property Securities Register website.
Our lawyers can advise you on personal security interests matters including:
- preparation of security agreements;
- checking the PPS Register;
- preparation of trading terms and conditions that gives rise to a security interest;
- registration of security interests;
- advice on whether you need to register a security interest against another person; and
- advice to businesses facing personal security arguments with customers and liquidators.
Contact us to arrange a consultation.