This is important for you if you are continuing to rely on any long-standing security from a company or individual over non-real estate assets.
Securities registered on the Personal Property Securities Register are usually only registered for seven years. Registration needs to be renewed before expiry in order to maintain enforceability and priority if there is an insolvency. A registration cannot be renewed after expiry.
The seventh anniversary of the commencement of registrations is coming up on 30 January 2019.
That means that original registrations are about to expire.
This message applies to all types of registered securities.
But it is particularly important to consider any security you hold over the non-real estate assets of a company.
Those were previously known as company charges, and sometimes referred to as mortgage debentures or secured company guarantees.
All pre-existing company charges that were previously registered with ASIC under the old system were automatically migrated and registered on the PPSR.
Various other pre-existing types of securities under other previous registration systems were also automatically migrated – such as Bills of Sale from individuals, as just one example. So these comments aren't limited just to company charges.
Those "migrated" registrations will automatically expire if not renewed by 30 January 2019.
If you are entitled to the benefit of any migrated charge and haven't already done so, you will have to go through a process to "claim" it before you can renew the registration.
If this affects you, then you need to act immediately to protect your position.
The Personal Property Securities Registrar does not send out renewal notices.
So more generally, if you hold any registered securities it's important to maintain your own record of registrations with additional details summarising the commercial significance and context and expiry date; and to include a reminder in your corporate or business diary to consider renewal of registration at an appropriate time ahead of expiry.
As you will see, if other registrations were made for you around the time that the new PPS registration system commenced, then they are likely to be coming up to expiry as well.
This is commentary published by Colin Biggers & Paisley for general information purposes only. This should not be relied on as specific advice. You should seek your own legal and other advice for any question, or for any specific situation or proposal, before making any final decision. The content also is subject to change. A person listed may not be admitted as a lawyer in all States and Territories. © Colin Biggers & Paisley, Australia 2024.