A NEW WORLD: PPSA IN
AUSTRALIA
David Brown, University of Adelaide
BACKGROUND/CONTEXT
 Federal, State and common law
 inconsistency and overlap within/ between jurisdictions
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
Form-based
Identity of grantor/debtor
Location
Type of collateral
L i e n s O n C r o p s O f S u g a r
Cane Act 1931 (Qld)
M a j o r S p o r t s F a c i l i t i e s A c t
2001 (Qld)
C i r c u i t L a y o u t s A c t 1 9 8 9
(Cth)
M a n u f a c t u r e d H o m e s
(Residential Parks) Act
2003 (Qld)
M o t o r V e h i c l e s a n d B o a t s
Securities Act 1986
P a r t n e r s h i p A c t 1 8 9 1 ( Q l d )
P o l i c e P o w e r s a n d
Responsibilities Act 2000
(Qld)
P r o p e r t y A g e n t s a n d M o t o r
Dealers Act 2000 (Qld)
P r o p e r t y L a w A c t 1 9 7 4
(Qld)
S a l e O f G o o d s A c t 1 8 9 6
(Qld)
S e c o n d - H a n d D e a l e r s a n d
Pawnbrokers Act 2003 (Qld)
S t o r a g e L i e n s A c t 1 9 7 3
(Qld)
T r a n s p o r t O p e r a t i o n s
(Road Use Management) Act
1995 (Qld)
B i l l s O f S a l e A c t 1 8 8 6 ( S A )
C o n s u m e r C r e d i t ( S o u t h
Australia) Act 1995 (SA)
C o - o p e r a t i v e s A c t 1 9 9 7
(SA)
C r i m i n a l L a w ( C l a m p i n g ,
Impounding and Forteiture
of Vehicles) Act 2002 (Vic)
N a t u r a l R e s o u r c e s
Management (Water
Management and Other
Matters) Amendment Act
2007 (SA)
P a r t n e r s h i p A c t 1 8 9 1 ( S A )
S e c o n d - H a n d V e h i c l e
Dealers Act 1995 (SA)
S o u t h A u s t r a l i a n M e a t
Corporation Act 1936 (SA)
S t o c k M o r t g a g e s A n d W o o l
Liens Act 1924 (SA)
U n c l a i m e d G o o d s A c t 1 9 8 7
(SA)
P l a n t B r e e d e r s ’ R i g h t s A c t
1994 (Cth)
W o r k e r s ’ L i e n s A c t 1 8 9 3
(SA)
C o m m e r c i a l A r b i t r a t i o n A c t
1984 (Vic)
C o n s u m e r C r e d i t ( V i c t o r i a )
Act 1995 (Vic)
W a r e h o u s e L i e n s A c t 1 9 9 0
(SA)
B i l l s O f S a l e A c t 1 8 9 9 ( W A )
B u l k H a n d l i n g A c t 1 9 6 7
(WA)
C o n s u m e r A f f a i r s A c t 1 9 7 1
(WA)
C o n s u m e r C r e d i t ( W e s t e r n
Australia) Act 1996
C o o p e r a t i v e a n d P r o v i d e n t
Societies Act 1903 (WA)
C h a t t e l S e c u r i t i e s A c t 1 9 8 7
(WA)
D i s p o s a l o f U n c o l l e c t e d
Goods Act 1970 (WA)
H i r e P u r c h a s e A c t 1 9 5 9
(WA)
M o t o r V e h i c l e s D e a l e r s A c t
1973 (WA)
P a r t n e r s h i p A c t 1 8 9 5 ( W A )
P a w n b r o k e r s a n d S e c o d Hand Dealers Act 1994 (WA)
P r o p e r t y L a w A c t 1 9 6 9
(WA)
R o a d T r a f f i c A c t 1 9 7 4 ( W A )
G o o d s A c t 1 9 5 8 ( V i c )
G o o d s S e c u r i t i e s A c t 1 9 8 6
(SA)
S a l e O f G o o d s A c t 1 8 9 5
(WA)
S e t t l e m e n t A g e n t s A c t 1 9 8 1
(WA)
T r u s t e e s A c t 1 9 6 2 ( W A )
W a r e h o u s e m a n s ’ L i e n s A c t
1952 (WA)
B i l l s O f S a l e A c t 1 9 0 0
(Tas)
S t o c k M o r t g a g e s A n d W o o l
Liens Act 1924 (SA)
U n c l a i m e d G o o d s A c t 1 9 8 7
(SA)
P l a n t B r e e d e r s ’ R i g h t s A c t
1994 (Cth)
W o r k e r s ’ L i e n s A c t 1 8 9 3
(SA)
C o m m e r c i a l A r b i t r a t i o n A c t
1984 (Vic)
C o n s u m e r C r e d i t ( V i c t o r i a )
Act 1995 (Vic)
W a r e h o u s e L i e n s A c t 1 9 9 0
(SA)
B i l l s O f S a l e A c t 1 8 9 9 ( W A )
B u l k H a n d l i n g A c t 1 9 6 7
(WA)
C o n s u m e r A f f a i r s A c t 1 9 7 1
(WA)
C o n s u m e r C r e d i t ( W e s t e r n
Australia) Act 1996
C o o p e r a t i v e a n d P r o v i d e n t
Societies Act 1903 (WA)
C h a t t e l S e c u r i t i e s A c t 1 9 8 7
(WA)
D i s p o s a l o f U n c o l l e c t e d
Goods Act 1970 (WA)
H i r e P u r c h a s e A c t 1 9 5 9
(WA)
M o t o r V e h i c l e s D e a l e r s A c t
1973 (WA)
P a r t n e r s h i p A c t 1 8 9 5 ( W A )
P a w n b r o k e r s a n d S e c o d -
Hand Dealers Act 1994 (WA)
P r o p e r t y L a w A c t 1 9 6 9
(WA)
R o a d T r a f f i c A c t 1 9 7 4 ( W A )
G o o d s A c t 1 9 5 8 ( V i c )
G o o d s S e c u r i t i e s A c t 1 9 8 6
(SA)
S a l e O f G o o d s A c t 1 8 9 5
(WA)
S e t t l e m e n t A g e n t s A c t 1 9 8 1
(WA)
T r u s t e e s A c t 1 9 6 2 ( W A )
W a r e h o u s e m a n s ’ L i e n s A c t
1952 (WA)
B i l l s O f S a l e A c t 1 9 0 0
(Tas)
P a y m e n t s A c t 2 0 0 2 ( V i c )
C h a t t e l S e c u r i t i e s A c t 1 9 8 7
(Vic)
P a w n b r o k e r s A n d S e c o n d Hand Dealers Act 1996
(NSW)
P e t r o l e u m ( O n s h o r e ) A c t
(NSW)
B u i l d i n g A n d C o n s t r u c t i o n
Industry Security Of Credit
Act 1984 (Vic)
S a l e O f G o o d s A c t 1 8 9 5
(SA)
S e c o n d - H a n d D e a l e r s a n d
Pawnbrokers Act 1996 (SA)
C o - o p e r a t i v e s A c t 1 9 9 6
(Vic)
F i n e s A c t 1 9 9 6 ( N S W )
I m p o u n d i n g A c t 1 9 9 3 ( N S W )
C o n f i s c a t i o n A c t 1 9 9 7 ( V i c )
D i s p o s a l O f U n c o l l e c t e d
Goods Act 1961 (Vic)
D o m e s t i c ( R e f a l a n d
Nuisance) Animals Act 1994
(Vic)
C o - o p e r a t i v e s A c t 1 9 9 2
(NSW)
C o - o p e r a t i v e s H o u s i n g a n d
Starr-Bowkett Societies Act
1998 (NSW)
F o r e s t r y R i g h t s A c t 1 9 9 6
(Vic)
L e g a l P r a c t i t i o n e r s A c t
1968 (SA)
F i n a n c e B r o k e r s C o n t r o l
Act 1975 (WA)
F i n e s , P e n a l t i e s a n d
Infringement Notices
P a r t n e r s h i p A c t 1 8 9 1 ( T a s )
P e n a l t y U n i t e s a n d O t h e r
Penalties Act 1987
M o t o r C a r T r a d e r s A c t 1 9 8 6
(Vic)
P a r t n e r s h i p A c t 1 9 5 8 ( V i c )
P r o p e r t y L a w A c t 1 9 5 8
(Vic)
R o a d S a f e t y A c t 1 9 8 6 ( V i c )
S a l e o f G o o d s ( V i e n n a
Convention) Act 1987 (Vic)
S e c o n d - H a n d D e a l e r s a n d
Pawnbrokers Act 1989 (Vic)
T r a n s p o r t A c t 1 9 8 3 ( V i c )
T r u s t e e A c t 1 9 5 8 ( V i c )
D e s i g n s A c t 2 0 0 3 ( C t h )
V i c t o r i a n C i v i l a n d
Administration
C o n t r o l A c t 1 9 6 6 ( Q l d )
B i l l s o f S a l e a n d O t h e r
Instruments Act 1955 (Qld)
L e g a l A i d C o m m i s s i o n A c t
1979 (NSW)
M i n i n g A c t 1 9 9 2 ( N S W )
O f f s h o r e M i n e r a l s A c t 1 9 9 9
(NSW)
W a r e h o u s e m a n s ’ L i e n s A c t
1935 (NSW)
W a t e r M a n a g e m e n t A c t
2000 (NSW)
C o o p e r a t i v e s A c t 1 9 9 7
(QLD)
C r e d i t ( R u r a l F i n a n c e ) A c t
1996 (Qld)
P h a r m a c y P r a c t i c e A c t
2006 (NSW)
S a l e O f G o o d s A c t 1 8 9 6
(Tas)
S e c o n d - H a n d D e a l e r s a n d
Pawnbrokers Act 1994 (Tas)
C o r p o r a t i o n s A c t 2 0 0 1
(Cth)
C o n s u m e r C r e d i t A c t 1 9 9 5
(ACT)
C o o p e r a t i v e s A c t 2 0 0 2
(ACT)
C r e d i t A c t 1 9 8 5 ( A C T )
I n s t r u m e n t s A c t 1 9 3 3 ( A C T )
H e m p F i b r e I n d u s t r y
Facilitation Act 2004 (ACT)
P a w n b r o k e r s A c t 1 9 0 2
(ACT)
C o n v e r s i o n A c t 1 9 2 1 ( C t h )
L o a n s S e c u r i t i e s A c t 1 9 1 9
(Cth)
P u b l i c T r u s t e e A c t 1 9 8 5
(ACT)
R o a d T r a f f i c A c t ( N T )
U n c o l l e c t e d G o o d s A c t
2004 (NT)
O f f s h o r e P e t r o l e u m A c t
2006 (Cth)
S h i p p i n g R e g i s t r a t i o n A c t
1981 (Cth)
W a r e h o u s e m a n ' s L i e n s
Regulations 2007
C h a t t e l S e c u r i t i e s
Regulations 1997
C o p y r i g h t s A c t 1 9 6 8 ( C t h )
C o - o p e r a t i v e s R e g u l a t i o n s
1997
I n s t r u m e n t s ( F e e s )
Regulations
B i l l s o f S a l e ( F e e s )
Regulations 1995
B i l l s o f S a l e ( R e q u i r e m e n t s
as to Instruments)
Regulations 1995
C o - o p e r a t i v e s R e g u l a t i o n s
1997
P u b l i c T r u s t e e A c t 1 9 4 1
(WA)
R i g h t s i n W a t e r a n d
Irrigation act 1914(WA)
G o o d s S e c u r i t i e s
Regulations 1997
R e g i s t r a t i o n O f I n t e r e s t s
In Motor Vehicles And Other
Goods Act 1983 (NT)
S a l e O f G o o d s A c t 1 9 7 2
(NT)
C o o p e r a t i v e s R e g u l a t i o n s a
2003
C o - o p e r a t i v e s R e g u l a t i o n s
and Admiralty Act 1988
(Cth)
T r a d e M a r k s A c t 2 9 9 5 ( C t h )
A i r N a v i g a t i o n A c t 1 9 2 0
(Cth)
A u s t r a l i a n I n d u s t r y
Development Corporation
Act 1970 (Cth)
C o m m o n w e a l t h I n s c r i b e d
Stock Act 1911 (Cth)
M e r c a n t i l e L a w A c t 1 9 6 2
(ACT)
P a r t n e r s h i p A c t 1 9 6 3 ( A C T )
F i s h e r i e s M a n a g e m e n t A c t
1991 (Cth)
L o a n s S e c u r i t i e s
Redemption and
O f f s h o r e M i n e r a l s A c t 1 9 9 4
(Cth)
W a r e h o u s e m e n ' s L i e n s A c t
(NT)
M o t o r D e a l e r s R e g u l a t i o n s
T a x a t i o n A d m i n i s t r a t i o n
Act 1953 (Cth)
T r e a s u r y B i l l s A c t 1 9 1 4
(Cth)
W o o l I n t e r n a t i o n a l A c t
1993 (Cth)
T r a f f i c A c t ( N T )
B i l l s o f S a l e ( F e e s )
Regulations 1983
JUSTIFICATION AND HISTORY
 Economic benefits of rationalisation incl.cheaper access to
credit, greater pool of credit
 International initiatives
 Trans-Tasman Memorandum of Understanding for
Harmonisation and Cooperation in Commercial Law, 2000,
2010
 NZ PPSA 1999 in force 2002
 Molomby 1971
 Law reform 1990-2000
 Federal/state
 Political adoption at Commonwealth level, 2005
 Draft Bill 2008
LEGISLATION AND TIMELINE
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Personal Property Securities Act 2009 ( Cth)(“PPSA”)
PPS (Consequential Amendments)Act 2009
PPS Regulations 2010
PPS (Corporations and other Amendments) Acts 2010 &
2011
 After several delayed starts, all above came into force or
operative effect on 30 Jan 2012, including the PPS Register
 30 Jan 2014- end of ‘transitional period’
 30 Jan 2015- completion date for review of PPSA
STATISTICS
• There were 281,010 registrations of
transitional security interests created on
the PPSR in January 2014, a 552%
increase from 43,074 in December 2013.
• The number of searches on the PPSR
reached
1 715 747 for the quarter to December of
2013.
• There were 7 719 882 registrations on the
PPSR as at 31 December 2013.
DESIGN ISSUES
 Federal/State jurisdictional difficulties
 Requires State Acts to refer power to Commonwealth
 Advantage one national system
 Disadvantages - political trade-offs, some jurisdictional
consequences (eg forum for disputes)
 Registration system
 Chose ‘exact’, not similar/close match search system
 Only concession -search tool case insensitive
 Approach to transition
 2 year ‘grace period’ for existing agreements as at 30/1/12
 Migration of existing registries by government, prior to 30/1/12
 Alignment with Corporate insolvency legislation
 How to deal with other registers, eg ships, patents
TERMINOLOGY
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


Security Interest
Secured Party
Grantor (debtor)
Practice terms emerging- General Security Agreement
(GSA)
 All present and after-acquired property (ALLPAAP)
 Australian Financial Security Authority (AFSA) administers
Register, answers to Commonwealth Attorney -General
SCOPE-COLLATERAL
 Personal Property
 Not land or interests in land
 Not fixtures- common law test should apply
 Also the case in NZ
 Licences
 Private commercial ones if transferable, incl. IP licences
 But most govt.ones carved out, eg fishing, minerals, taxi etc.
 Water Rights
 3 yr review – currently under way, to report by January 2015
 Reviewer, Bruce Whittaker, Partner, Ashursts (Melbourne)
 Other exclusions, eg pawnbrokers
SCOPE-SECURITY INTERESTS
 Overriding substance test - irrespective of ID of debtor, form,
or who has title
 Security agreement takes effect according to terms
 Contract interpretation/incorporation principles apply
 Examples given -fixed, floating charges, pledge, mortgage,
but also HP, conditional sale (ROT), leases, consignments,
flawed assets, trusts
 Can take security over own obligation ie ADI can take
security over customer ’s credit balance with that ADI
 Exclusions for avoidance of doubt
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


Set-off
Quistclose trusts
Sale of accounts on business sale
Interests arising by operation of general law, eg customary liens,
statutory charges
‘DEEMED’ SECURITY INTERESTS
 ‘PPS Leases’- where over one year, or could last over one
year- leases or bailments
 Must also be regularly engaged in business of bailing/leasing those
type of goods
 Bailments must be for value given by bailed
 Serial numbered goods over 90 days – but Deregulatory Measures
Bill 2014 to remove this
 Commercial consignments
 Where both regularly engaged
 Outright transfer of accounts
 Remedies provisions do not apply
 Not debtor/creditor
 Insolvency effect of non -perfection not applied to deemed SI
ATTACHMENT AND ENFORCEABILITY
 Attachment is pre-req of enforceability against Grantor
 When grantor has rights in collateral, and SI gives value for SI
 After-acquired property- when G takes possession in case of titlebased (now) SI
 Mere used of floating charge language will not imply postponed
attachment
 Would need express words to postpone attachment
 Enforceability against third parties require written evidence and
signed by G, unless possession/control
 Maiden Civil (2013) dicta, no writing there
 But alternative where G conduct assents to terms by act or omission
 Description of collateral required , item or class
PERFECTION GENERALLY
 Perfection requires attachment and enforceability, AND one of
 Registration
 Possession
 Actual physical possession, not apparent or constructive possession
 But cannot be re-possession ie for enforcement
 Control, only for ADI and other accounts, financial property, and
space/satellite objects
 Contrast NZ, only has possession
 Control of ADI accounts, v powerful as have priority over other perfected SI
with no control
 Definitions of control for different types, e.g shares, letters of credit
 Order irrelevant, as long as continuously perfected by any combination
of means, at relevant time of priority conflict
 Temporary perfection e,g when G changes name, when new
proceeds, but not as good as other perfection
 Third parties take free of temporarily perfected interests
NOTICE FILING AND THE PPS REGISTER
 File financing statement notifying a claimed SI over
collateral
 Don’t’ lodge security agreement, e.g previous Register of company
charges
 Misunderstanding/nostalgia
 Migrated company charges do have the instruments attached
 Interested persons can apply to SP to provide copy and
information,
 10 business days to respond.
 If no response, then to AFSA, then judicial process
 Could be confidentiality agreements between SP and G
 PPS Register run by AFSA 24/7 online registration and
searching.
 No shopfront, call centre staff and managers in Adelaide
REGISTRATION- DESIGN ISSUES
 Exact match searching
 Grantor details- Regulations lay down hierarchy
 Serial numbered goods
 Defects-errors in above two render financing statement
ineffective, ie as if no perfection
 Other types of errors may be seriously misleading and
therefore FS ineffective
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


Whether search would be capable of disclosing the information
A ‘reasonable searcher’?
Objective, no actual search needed here
Knowledge or motive irrelevant for priorities
 Collateral classes
REGISTRATION- OTHER DETAIL
 Privacy issues for individuals
 Apply to serial numbered goods, cannot register against grantor
details
 Registration periods. Commercial property, indefinite or max
25 yrs
 7 for consumer property and serial numbered goods
 Collateral descriptors in Regs
 Currently can only register against one single collateral class, or
‘all PAAP’
 Civil liability for SP or agent who registers when no
reasonable belief that SI over collateral or that it secures
any obligation
DEFAULT RULES FOR PRIORITY
 Perfected
 Earlier perfected
 Where both
unperfected:first to
attach
 Beat unperfected
 Beat later perfected
 Beat later to attach
 Perfection by control
 Beat perfection by
any other method
 Crucial date- when
SIs come into
conflict, eg on
receivership
 Subordination
agreements as per
contract
PURCHASE MONEY SECURITY INTERESTS DEFINITION
 Seller or lender finance of acquisition, eg ROT, HP, lease,
including PPS Leases, consignments
 Later PMSI will have priority over earlier perfected SI
(unless control), IF:
 Claim PMSI on registration
 Register before delivery of inventory or,
 Within 15 business days for non-inventory
 Not approach in NZ, Canada
 Only works for collateral where secured purchase money
obligations, not allmonies now
 Contrast Armour v Thyssen, HL
 Allocation of payments default provisions
PURCHASE MONEY SECURITY INTERESTS EXCEPTIONS ETC.
 Exceptions-sale and leaseback,financial property, accounts
 Not possible for consumer property unless serial numbered
goods
 Treatment of accounts financiers - take priority over PMSI
on proceeds, provided notice given to PMSI SP before
registration or attachment of account financiers SI
 Crop and livestock ‘superpriority’ for inputs-priority over
non PMSIs in collateral or its proceeds
PROCEEDS
 Direct or indirect result of dealing with collateral
 If authorised dealing, then SP claim proceeds
 If unauthorised, SP can claim collateral and proceeds,
subject to value of original collateral at time of dealing
 Grantor interest in proceeds
 SI attaches automatically
 No fiduciary requirement
 But tracing rules apply
 Perfection almost automatic
 Proceeds expressly includes insurance payments,
redemption or discharge of financial property, license and
other IP payments, dividends etc on investment instruments
or intermediated security
ACCESSIONS
 Goods installed or fixed to other goods
 Presupposes separate identity, distinguish commingled
 Removable- seizure implicit but compensation to owner of
whole if damage
 Owner or other SP may discharge debt and retain whole
 Notice to higher ranking SP and grantor
COMMINGLING
Mixed, processed,manufactured or commingled goods where ID lost
in product or mass
and where not commercially practical to restore
Replaces need for disputes re aggregation clauses and charges eg
Clough Mill v Martin, Borden etc.
 Automatic perfection of SI in mass if SI in input was
perfected
 Claims of competing perfected input SIs proportionate to
obligations secured
 Priority limit of value at time of input, to avoid windfall
 Preserves input PMSI status over non PMSIs in product if non
PMSI given by grantor
THIRD PARTIES AND ‘TAKING FREE’ RULES
 Where SP would otherwise have SI in collateral, third
parties can ‘take free’ of SI in certain cases
 Not where third party takes a SI
 Serial numbered where omitted ( eg commercial) or wrong,
search only by serial no. would not have disclosed reg.
 Not inventory
 Former State laws- Motor vehicles, non inventory
buyers/lessees from licensed dealers
 Separate provision for serial number searches of motor vehicles
 Low value domestic ‘garage sales’ $5000 -value difficulties
 Knowledge carveouts, actual or constructive, of what?
 Other priority rules have similar effect - Debtor payments to
creditors, payments of currency, cheque, shares
ORDINARY COURSE OF BUSINESS
 Ordinary course of seller/lessor ’s business of selling etc
kind of goods
 SI given by seller
 Sale, buyer
 Not inventory purchases of serial no goods, eg vehicles
 Lessee ‘takes free’ of SI, so takes lessee’s interest only
 Case law from Canada and New Zealand –tensions between
SP and buyer protection policy
REMEDIES-SCOPE
 Chapter 4 PPSA- Scope- commercial collateral-contract out
of nearly all, including right of redemption
 Except duties on sale/good faith; distribution rules, buyer from SP
taking free
 Consumer collateral- aligned with National Credit Code eg notices,
if any inconsistency, NCC prevails
 Some provisions not for consumer cases, eg right to retain/foreclose
 Does not apply to company receivers’ powers and duties - governed
by Part 5.2 Corporations Act
 Does apply to receivers of individual’s property
 But does apply to other ‘controllers’ of corporate property, eg SP direct
enforcement, amended in 2011
 Does not apply to deemed SI, eg operating leases
REMEDIES-CONTENT
 General duty to act in good faith and commercially
reasonable manner
 But only re Chapter 4
 Duty to take reasonable care to obtain market value or best
price reasonably obtainable in circumstances at time of sale
 Taken from receivership duty, post Downsview, contrast Medforth v
Blake, Silven in UK
 PPSA gives reasonable time to store, value and consider options
 Seizure (on default), dispose or retain -latter rare because
foreclosure and party can object, without any adjudication.
On objection, disposal becomes only option
 Provisions as to disposal of intangibles
 Buyer from enforcing SP takes free of SI and G’s interest,
and any junior SI
INSOLVENCY AND NON -PERFECTION
 Unperfected SI ‘vest in grantor ’( ie ineffective) on liquidation,
administration, bankruptcy
 (NB also against execution creditors if unperfected at time of
seizure or court order)
 This reflects philosophy in pre PPSA registers eg company charges
 But contrast NZ
 parallel requirement that corporate PPSA SIs must be registered
within 20 business days of agreement, or more than six months
before insolvency event, otherwise ineffective on insolvency
 Vesting does not apply to commercial consignments,
transfers of accounts or chattel paper,
 but applies to leases, whether or not actual security interests
PPSA - ALIGNMENT WITH INSOLVENCY LAW
 Terminology, eg reference to charges, pledges, liens, fixed, floating in
corporation legislation
 Policy -Attempt to be insolvency-neutral
 But how to preserve priority claimants (eg employees) over former floating
charge realisations – type of assets circulating
 concept of control used differently from in perfection sense -PPSA
 Attempt to exclude ROT etc refers to grantor not having title
 How to align with broader ‘SI’ concept to include title -based security eg
ROT- concept of PPSAROT property
 Other provisions, particularly voluntary administration, whether ‘property of
the corporation’ includes title based SI such as ROT
 Eg whether security over all or substantially all of company’s property
 Generally on liquidation, the definition of property of corporation only covers
secured property that has vested in grantor due to non -perfection
CONFLICT OF LAWS
 Territorial scope of PPSA - if Australian grantor entity, OR goods,
financial property, ADI account or account payable in Australia, or
IP under Australian law
 But then Part 7.2 conflict rules govern disputes in Australia re
validity, perfection and its effect
 Law (other than conflicts rules) of place where goods located
 Law where debtor located if intangible
 ADI accounts- law of place that governs the account
 Other specific rules, including for mobile goods, and where
destined for another jurisdiction
 Special priority rule for accounts, financial property -where other jurisdiction
has no register, then SP that registers in Australia prior to attachment of
other interests will have priority
 Can contract for Australian law to apply but only if grantor is
Australian entity
 Overrides statutory rules in Part 7.2
 Not apply to intangible and transfers of accounts, in practice, applies to
goods
 Enforcement - Chapter 4 on remedies does not apply to goods
outside Australia
 Where PPSA applies due to Aus entity, probably the remedies law of the
location of goods applies
REVIEW AND PROGNOSIS
 Education
 Impact on SMEs and particular sectors
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Transition/migration issues
Case law to date- Maiden Civil case, 2013
Review timeline- completion and report Jan 2015
Streamlining and simplification
 particularly register issues
 Relationship with insolvency legislation
 Application of overseas jurisprudence
 Political risk and regulatory capture
 Overseas developments
 NZ, Asia, EU?
 International cooperation
 In 2013, Australia passed legislation to enable it to ratify and
incorporate the Cape Town Convention, Aircraft Protocol in domestic
law- it will prevail over any inconsistent laws, including PPSA