Presentation on theme: "Personal Property Securities Act 2009 (Cth) A new regime."— Presentation transcript:
Personal Property Securities Act 2009 (Cth) A new regime
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New Regime The 6 elements of the new regime: 1.Security Interest 2.Collateral 3.Attachment 4.Enforceability 5.Perfection 6.Enforcement
Security Interest A “Security Interest” is: an interest in relation to personal property provided for by a transaction that secures the payment or performance of an obligation
Deemed Security Interests The interest of a transferee in an account or chattel paper The interest of a consignor who delivers goods to a consignee under a consignment The interests of a lessor or bailor of goods under a PPS lease
Lessons to be learned from New Zealand Graham v Portacom New Zealand Limited (2004) 10 TCLR 983
Lessons to be learned from New Zealand Waller v New Zealand Bloodstock Limited  2 NZLR 629
Collateral The personal property to which the “security interest” applies, for the purpose of securing the payment or performance of an obligation, is called the “collateral” Secured PartyGrantor $$ Collateral
Attachment A security interest attaches to collateral when: the grantor has rights in the collateral, or the power to transfer rights in the collateral to the secured party; and either: -the secured party gives some value for the security interest; or -the grantor does an act by which the security interest arises
Enforceability A security interest is enforceable against a third party in respect of collateral if: the security interest is attached to the collateral; and: the secured party possesses the collateral; the secured party has control of collateral; or the parties have entered into a security agreement.
Priority Priority, the general position is: a “perfected” security interest has priority over an unperfected security interest Priority between perfected interests in determined on a first-in-time basis priority between unperfected interests is determined on a first-in-time basis
Exception to Priority: PMSIs Purchase Money Security Interest – the Super Priority Include: - a security interest in collateral where securing all or part of the purchase price - an interest under a PPS Lease - an interest under a commercial consignment