About the PPSR homepage
About the PPSR
The Personal Property Securities Register (PPSR) is the register where security interests over personal property may be registered and can be searched.
The PPSR was created as a result of the Personal Property Securities Act 1999 coming into force on 1 May 2002 and it replaced a number of existing registers including the Chattels Register, Motor Vehicle Securities Register and the Register of Company Charges. Read more in 'What's the PPSR all about'
- Why use the PPSR?
Why use the PPSR?
Registering your security interest on the PPSR may give you a better chance of recovering a debt if your debtor defaults.
The Act contains rules for determining priority between security interests in the same collateral. It is therefore important to register your security interests as soon as possible. If you do not register your security interests and a debtor is adjudicated bankrupt or is placed into liquidation, secured creditors will be ahead of you when payments are made or assets distributed.
How else can the PPSR protect my business?
The PPSR can be used to assess the level of risk that a debtor may represent to a creditor. Before entering into a contractual relationship with a debtor search the PPSR to check whether they may pose a risk.
- Search a debtor to determine whether there are any existing security interests over their collateral, this may mean they have a number of existing debts.
- Search a debtor to identify if the piece of collateral they are offering you as security has been used as security for another party and if so, someone else will have priority over this collateral.
- Search collateral on the PPSR before buying an item. Check to see if the item is encumbered with an existing registered security. If you are purchasing a car, you may search on the registration number or VIN. Alternatively, conduct a debtor search (against the seller of the goods).
Refer to the Searching the PPSR section for more information.
- Page links
Does the PPSR affect you?
- Are you in business?
- Are you buying a high-value secondhand item, e.g. a motor vehicle?
- Are you a consumer?
Key terms you should know
- Financing statement
- Personal property
- Secured parties
- Purchase Money Security Interest
Learn how to use the PPSR
Many people only learn or become aware of the PPSR after their debtor defaults or becomes insolvent and they lose out financially like the business described in this case example.