If you registered security interests on the PPSR when it launched seven years ago, you would be wise to check your records for the expiry date…
The Personal Property Securities Register (PPSR) came into existence on 30 January 2012.Registering security interests on the PPSR significantly affects the priority of those security interests compared with the interests of other parties.
A number of secured parties registered their security interests for a period of seven years around the time the PPSR launched. Several registrations on old state-based motor vehicles were also registered for seven years.
Subject to some exceptions, registrations lapse automatically after that seven-year period – unless the security holder extends the registration.
It is worth noting that the seven-year anniversary of the PPSR launching was 30 January 2019. This means secured parties could find their security interests are about to lapse if they do not take action to extend their registration now.
Once registration has lapsed, extension may not be possible. This means the security interest loses the priority it obtained through registration, and that the secured party must register an all-new security interest, which in turn forfeits priority to any higher-ranking security interests that were obtained earlier by other parties.
Also, new registrations will not stop the secured property from vesting in a grantor’s administration and/or liquidation if they are appointed within six months of registration.
We recommend that you:
(a) Review your PPSR registrations and their expiry date;
(b) Confirm money or obligations still owing;
(c) Take action to renew the PPSR registrations before their expiry date.