Personal Property Securities | By Lawyers
Skip to main content

Personal Property Securities

FED

This publication provides the explanation and tools practitioners need to navigate personal property security registration and matters relating to the Personal Property Securities Act.

1 Matter Plan

Overview

This commentary covers the Personal Property Securities system, including creating security interests, attachment and perfection, PPSR registration, renewing or amending a registration, release and discharge of a security interest and enforcement.

The Reference materials folder includes guidance on electronic signing and remote witnessing, and the Getting the matter underway folder contains essential compliance and client engagement documents. The comprehensive Retainer Instructions ensure that all necessary information is gathered from the client at the outset of the matter.

Precedents in this publication include:

  • Security agreement – Company extensive all assets;
  • Security agreement – Concise;
  • Equipment hire agreement;
  • Terms of trade;
  • Consignment agreement.
  • Minutes of meeting of grantor resolving to sign the general security agreement.
Icon

1 Matter Plan Included

  • Item icon ALERTS - Nil
  • Item icon Full Commentary - Personal Property Securities
  • Folder icon Reference materials
    • Item icon AI Prompts
      An AI prompt defines a specific task for AI to perform, like drafting a particular document, and provides clear instructions on how to execute that task. The goal is for the AI to quickly create a useful first draft of a document, which the user verifies and refines into a final version, ultimately ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Looking to the Future
    • Item icon Electronic Signing and Witnessing
    • Item icon 101 Costs Answers
    • Item icon Further information
  • Item icon Overview
    This is a practical, matter-based publication. It is designed to provide the explanation and tools practitioners will need to readily document security arrangements using personal property as security when called upon to do so. The security agreements are flexible enough to secure any obligation at ...

    This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

  • Folder icon A. Getting the matter underway
    • Item icon Terminology
      The Act defines a number of key concepts that must be understood in order to understand the legislation, the register, and registrations and security agreements. Attachment happens when either value is given for the security interest or the grantor does an act by which the security interest arises.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon File cover sheet - Personal property securities
    • Item icon File cover sheet - Mortgages
    • Item icon To do list - General security agreement
    • Item icon First steps
    • Item icon Client details and verifying identity
    • Item icon Retainer instructions - Security agreements
    • Item icon Conflict of interest check
    • Item icon Initial letter to grantor client with costs agreement
    • Item icon Initial letter to secured party client with costs agreement and summary of loan
    • Item icon Summary of terms of security agreement
    • Folder icon Costs agreements - Personal Property Securities
      • Folder icon Australian Capital Territory
        • Item icon Costs agreement - ACT
        • Item icon Scope of work - Personal property securities
      • Folder icon New South Wales
        • Item icon Costs agreement - NSW
        • Item icon Scope of work - Personal property securities
      • Folder icon Northern Territory
        • Item icon Costs agreement - NT
        • Item icon Scope of work - Personal property securities
      • Folder icon Queensland
        • Item icon Initial letter to client enclosing costs agreement
        • Item icon Costs agreement - QLD
        • Item icon Scope of work - Personal property securities
        • Item icon Abbreviated costs disclosure - Costs under $3000
      • Folder icon South Australia
        • Item icon Costs agreement - SA
        • Item icon Scope of work - Personal property securities
      • Folder icon Tasmania
        • Item icon Costs agreement - TAS
        • Item icon Scope of work - Personal property securities
      • Folder icon Victoria
        • Item icon Costs agreement - VIC
        • Item icon Scope of work - Personal property securities
      • Folder icon Western Australia
        • Item icon Costs agreement - WA
        • Item icon Scope of work - Personal property securities
        • Item icon Standard costs disclosure form for clients - Fees under $3000
    • Item icon Time and costs estimates
    • Folder icon If required - Updating costs disclosure
      • Item icon Letter to client updating costs disclosure
      • Item icon Charge securing costs
      • Item icon Guarantee securing costs
      • Folder icon Costs disclosure before settlement in litigation matters
        • Item icon Letter to client - Costs disclosure before settlement - NSW, VIC, and WA
        • Item icon Letter to client - Costs disclosure before settlement - QLD, SA, TAS, ACT, and NT
    • Folder icon General deeds, agreements, execution clauses, and statutory declarations
      • Item icon Deeds and Agreements
      • Folder icon Deeds
        • Item icon Deed for general use
        • Item icon Deed of guarantee
        • Item icon Deed of release
        • Item icon General deed of indemnity
        • Item icon Deed of assignment of agreement
        • Item icon Deed of gift
        • Folder icon Library of standard clauses for deeds
          • Item icon Amendment
          • Item icon Confidentiality for defined information - All parties
          • Item icon Confidentiality for defined information - One party
          • Item icon Confidentiality for terms of deed - All parties
          • Item icon Confidentiality for terms of deed - One party
          • Item icon Costs
          • Item icon Counterparts
          • Item icon Dispute resolution
          • Item icon Events beyond control
          • Item icon Governing law and jurisdiction
          • Item icon Interpretation
          • Item icon No assignment
          • Item icon Notices
          • Item icon Severance
          • Item icon Waiver
          • Item icon Whole agreement
      • Folder icon Agreements
        • Item icon Agreement for general use
        • Item icon Heads of agreement
        • Item icon Non-disclosure agreement - Formal
        • Item icon Non-disclosure agreement - Informal
        • Folder icon Library of standard clauses for agreements
          • Item icon Amendment
          • Item icon Confidentiality for defined information - All parties
          • Item icon Confidentiality for defined information - One party
          • Item icon Confidentiality for terms of agreement - All parties
          • Item icon Confidentiality for terms of agreement - One party
          • Item icon Costs
          • Item icon Counterparts
          • Item icon Dispute resolution
          • Item icon Events beyond control
          • Item icon Governing law and jurisdiction
          • Item icon Interpretation
          • Item icon No assignment
          • Item icon Notices
          • Item icon Severance
          • Item icon Waiver
          • Item icon Whole agreement
      • Folder icon Execution clauses
        • Folder icon Library of execution clauses for agreements
          • Item icon Attorney
          • Item icon Authorised officer
          • Item icon Company
          • Item icon Company - Sole director
          • Item icon Individual
          • Item icon Individual - No witness
        • Folder icon Library of execution clauses for deeds
          • Item icon Attorney
          • Item icon Authorised officer
          • Item icon Company
          • Item icon Company - Sole director
          • Item icon Individual
      • Folder icon Statutory declarations
        • Item icon Commonwealth statutory declaration
        • Item icon Statutory declaration - blank - ACT
        • Item icon Statutory declaration - blank - NSW
        • Item icon Statutory declaration - blank - VIC
        • Item icon Statutory declaration - blank - QLD
        • Item icon Statutory declaration - blank - TAS
        • Item icon Statutory declaration - blank - SA
        • Item icon Statutory declaration - blank - WA
        • Item icon Statutory declaration - blank - NT
        • Item icon Standard annexure note for documents
      • Item icon Standard annexure note for documents
  • Folder icon B. The security agreement
    • Item icon Creating the general security agreement
      The following precedents are available on the matter plan:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Purchase money security interests
      Defined in s 14, the following are likely scenarios in which these interests would arise:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Taking personal property free of security interests
      The Act in ss 41 to 53 deals with the various situations in which a purchaser takes title to personal property free of secured interests.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon No security loan agreement
    • Item icon Security agreement - Concise
    • Item icon Security agreement - Extensive
    • Item icon Security agreement - Company extensive all assets
    • Item icon Sample collateral schedule for business assets
    • Folder icon If required - Other agreements
      • Item icon Equipment lease agreement
      • Item icon Equipment hire agreement
      • Item icon Terms of trade
      • Item icon Assignment of a security agreement
      • Item icon Business purpose declaration
      • Item icon Consignment agreement
      • Item icon Agreement for bailment of personalty
      • Item icon Contract for sale of personal property
      • Item icon Agreement for supply of goods and services
    • Item icon Attachment to collateral
      A security interest is only effective if it has attached to the collateral, being the personal property, that constitutes the security. The attachment rule provides that a security interest attaches to collateral when the grantor has rights or the power to transfer rights in the collateral and the ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Perfection
      Perfection is a key concept. An attached security interest is perfected by the secured party providing public notice of its secured interest by:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Registration and the financing statement
      Most practitioners will perfect a security interest by registering it unless they have written acknowledgement from their client that the client has possession or control of the collateral. The Personal Property Securities Act 2009 enables a security interest to be registered as soon as a party has ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Financing statement - Section 153 requirements for security interests
    • Item icon PPSR - Online registration only
    • Item icon Consumer property and commercial property
      The collateral must be described as either:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Serial number
      The regulations either require or permit certain collateral to be described by serial number in a registration. Consumer property that is an aircraft, a motor vehicle or a watercraft must be described by serial number. A serial number for a motor vehicle is the vehicle identification number; if ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Secured party group
      A secured party group can comprise one or more secured parties, but normally it will comprise only one. Law stationers and law firms who provide registration and searching services will register as a secured party group. A secured party group is allocated a number and an access code known only to ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Verification statement
      The verification statement is defined by s 155 and is given by the registrar in approved form to the secured party, who is called the statement holder under s 157. The statement holder must give notice of the verification statement in the approved form to the grantor as soon as reasonably ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Other agreements relating to real estate, business, companies etc.
      Transitional security interests and migrated registrations The Personal Property Securities Act 2009 established a system for the creation, priority and enforcement of security interests in personal property. All existing security interests created before the Act commenced and registered on one of ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Folder icon If required - Priority
      • Item icon Priority of security interests
        The priority rules established by the Act replace the former common law and equitable rules which governed priority of security interests and are very similar to old system title priorities under registration of deeds legislation. The new rules apply to two or more competing security interests. If ...

        This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

      • Item icon Deed of priority
  • Folder icon C. Mid transaction
    • Folder icon Acting for the grantor
      • Folder icon Individual
        • Item icon Letter to grantor client to attend to sign documentation
        • Item icon Letter to secured party's solicitor returning documents - Individual grantor
      • Folder icon Company
        • Item icon Letter to grantor client company sending documents for signing
        • Item icon Minutes of meeting of grantor resolving to sign general security agreement
        • Folder icon Statutory declarations
          • Item icon Commonwealth statutory declaration
          • Item icon Statutory declaration - blank - ACT
          • Item icon Statutory declaration - blank - NSW
          • Item icon Statutory declaration - blank - VIC
          • Item icon Statutory declaration - blank - QLD
          • Item icon Statutory declaration - blank - TAS
          • Item icon Statutory declaration - blank - SA
          • Item icon Statutory declaration - blank - WA
          • Item icon Statutory declaration - blank - NT
          • Item icon Standard annexure note for documents
        • Item icon Example content - Statutory declaration that company is solvent
        • Item icon Letter to secured party's solicitor returning documents - Company grantor
    • Folder icon Acting for the secured party
      • Item icon Letter to grantor's solicitor submitting documentation
      • Item icon Authority to complete documents and satisfy requisitions
      • Item icon Letter to secured party client enclosing copy documentation for signing
      • Item icon Direction to pay
      • Item icon Certificate of identification of grantor
  • Folder icon D. If required - Deeds, acknowledgements and independent legal advice
    • Item icon Deed of forgiveness of debt
    • Item icon Deed of guarantee and explanation
    • Item icon Acknowledgement of debt simple
    • Item icon Acknowledgement of debt various situations
    • Folder icon Independent legal advice
      • Folder icon New South Wales
        • Item icon Schedule 1 Declaration by borrowergrantor of a security interest
        • Item icon Schedule 1A Declaration by borrowergrantor of a security interest (corporation)
        • Item icon Schedule 1B Declaration by borrowergrantor of a security interest (trustee)
        • Item icon Schedule 2 Declaration by third party mortgagor, guarantor, surety mortgagor or indemnifier for the borrowergrantor of a security interest
        • Item icon Schedule 2A Declaration by third party mortgagor, guarantor, surety mortgagor or indemnifier for the borrowergrantor of a security interest (corporation)
        • Item icon Schedule 3 Interpreter's certificate
        • Item icon Schedule 4 Pt 1 Acknowledgment of legal advice by proposed borrower or grantor of security interest
        • Item icon Schedule 4 Pt 2 Acknowledgment of legal advice by proposed guarantor
        • Item icon Schedule 4A Pt 1 Acknowledgement of legal advice by proposed borrowergrantor of a security interest (corporation)
        • Item icon Schedule 4A Pt 2 Acknowledgment of legal advice by proposed guarantor (corporation)
        • Item icon Schedule 4B Pt 1 Acknowledgment of legal advice by proposed borrowergrantor of a security interest (trustee)
        • Item icon Schedule 4C Acknowledgment of legal advice by proposed borrowergrantor of a security interest trustee (corporation)
      • Folder icon Victoria
        • Item icon Australian legal practitioner's certificate 1
        • Item icon Australian legal practitioner's certificate 2
        • Item icon Certificate by translator or interpreter
        • Item icon Form of acknowledgment given by a borrower or surety to the certifying Australian legal practitioner
      • Folder icon Other states
        • Item icon Acknowledgement of legal advice by proposed grantor
        • Item icon Acknowledgement of legal advice by proposed guarantor
        • Item icon Consent to same solicitor giving legal advice - Grantor guarantor
        • Item icon Declaration by the grantor
        • Item icon Declaration by third party for the grantor
        • Item icon Certificate of independent financial advice
        • Item icon Interpreters certificate
  • Folder icon E. Disputing a registration
    • Item icon Disputing a registration
      The administrative process The Act sets out a procedure for disputing registrations, called the amendment demand administrative process. This process is only available in the circumstances set out within s 179 of the Act. The administrative process involves four main steps:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Letter to secured party - Amendment Demand
    • Item icon PPSR - Amendment Statement
  • Folder icon F. If required - Renewal and amendment of a registration
    • Item icon Renewing or amending a registration
      Only a current registration can be renewed and therefore it can only be renewed before its expiry date. It is important that practitioners advise their clients to keep track of the registration expiry date. A ‘Registrations due to expire report’ can be generated from a PPSR account. To extend the ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Renew a registration
    • Item icon Amend a registration
  • Folder icon G. Release and discharge of a security interest
    • Item icon Release of security interest
      If a grantor or an interested person, for example, a purchaser of an asset or business, wishes to ensure that personal property is free of any security interest then that person must obtain either:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Partial discharge of part of the collateral
    • Item icon Discharge of a security interest in personal property
    • Item icon Undertaking by secured party to register release of security interest
    • Item icon Letter to discharging secured party requesting discharge
  • Folder icon H. Enforcement
    • Item icon Enforcement
      Chapter 4 of the Act sets out the provisions for enforcement of security interests. It provides secured parties with remedies additional to those in their agreements under statute and at common law or in equity. The Act in s 111 imposes a general standard of honesty and commercial reasonableness in ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Available remedies
      Remedies available to a secured party on the grantor's default include the rights to:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Notices
      The Act requires notices to be in writing: s 286. A notice must be given to a registered secured party at the address specified in the registration by leaving it there or sending it there by prepaid post, by fax or by email: s 287. If there are two or more secured parties, one notice to the ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Notice to person owing money to grantor - Section 120(2)(a)
    • Item icon Notice to grantor - Enforcement of security interests in liquid assets - Section 121
    • Item icon Notice to higher priority parties - Enforcement of security interests in liquid assets - Section 121
    • Item icon Notice requiring enforcing party to give possession of collateral to higher priority party - Section 127
    • Item icon Notice of proposed disposal to grantor and higher priority party - Section 130
    • Item icon Notice of proposed purchase of collateral to grantor and higher priority party - Section 130
    • Item icon Notice of proposal to retain collateral - Section 135 - Personal Property Securities Register
    • Item icon Notice - Removal of accession to grantor and higher priority parties - Section 95
    • Item icon Reinstatement and redemption
      The grantor and other secured parties with a superior interest can object to the proposed enforcement. The grantor's right to redeem has priority over any other person's right. At any time before the disposal is exercised, the grantor or any secured party may redeem the collateral by paying out all ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

  • Folder icon I. Settlement and finalising the matter
    • Folder icon Acting for the secured party
      • Item icon Letter to grantor's solicitor advising ready for settlement
      • Item icon Summary of terms of security agreement
      • Item icon Letter to grantor finalising the matter
      • Item icon Letter to secured party client after settlement with summary
      • Item icon Letter to secured party client finalising the matter
    • Folder icon Acting for the grantor
      • Item icon Letter to grantor after settlement finalising the matter and enclosing summary
      • Item icon Summary of terms of security agreement
    • Folder icon Costs - Example invoices incorporating notification of rights
      • Item icon Example invoice incorporating notification of client's rights - NSW
      • Item icon Example invoice incorporating notification of client's rights - VIC
      • Item icon Example invoice incorporating notification of client's rights - QLD
      • Item icon Example invoice incorporating notification of client's rights - SA
      • Item icon Example invoice incorporating notification of client's rights - TAS
      • Item icon Example invoice incorporating notification of client's rights - ACT
      • Item icon Example invoice incorporating notification of client's rights - NT
      • Item icon Example invoice incorporating notification of client's rights - WA
    • Item icon Closing the file
    • Item icon File closing checklist
  • Item icon Comments and suggestions for By Lawyers

Our Authors

A team of legal professionals contribute to By Lawyers' publications, all helping to ensure that content is updated regularly to reflect changes in legislation, practice, and procedure.

Meet Our Authors
Authors