PPSA Changes as to when you must register your hire arrangements. Failing to do so may result in you losing your assets if the hirer goes broke…
23-May-2017
Personal Property Securities Amendment (PPS Leases) Act 2017 (“Amendment”) which amends the Personal Property Securities Act (“PPSA”) was assented to today so the following changes will be in effect from tomorrow. What does this mean?
Not all leases and bailment arrangements were captured under the PPSA. In order for it to apply, the hire or bailment arrangement had to be deemed
a security interest by satisfying the definition of a “PPS Lease” under Section 13 of the PPSA. A hire or bailment arrangement before the 20th
May, 2017 provided that was for a term greater than one year (including any option terms) or for an indefinite period (no end date) would be deemed
a PPS Lease under the PPSA and thus a security interest requiring perfection and registration under the PPSA.
- (i) are not longer than 2 years;
- (ii) are not longer than 2 years and the lease has not run over the 2 year period; or
- (iii) is for an indefinite provided it does not run for a period greater than 2 years.
What about your hire arrangements before the 20th May, 2017? They will still be governed by the pre-amendment provisions under the PPSA.
If you need any assistance, please contact us.