Who can register a security interest?
You can register a security interest on the Personal Property Securities Register (PPSR) if there is a valid security agreement between the debtor and the secured party (creditor) which creates a security interest in the personal property.
Security interests can include:
- hire purchase agreements (for example, over a TV)
- long term leases (for example, a lease over a washing machine)
- retention of title (Romalpa) clauses (for example, when a manufacturer supplies goods to a customer and has a term in their invoice that they keep title to the goods until the invoice is paid)
- loans which have personal property as security (for example, a car).
The importance of security agreements
Registering a financing statement does not replace the need for the underlying security agreement. Your financing statement needs to be supported by an appropriate security agreement. In most cases this will be a written agreement, signed by the debtor but can include an oral agreement.
The actual security agreement is not registered on the Personal Property Securities Register (PPSR), in its place a notice of this agreement is posted on the Register, by way of registering a financing statement.
If you are unsure how the Personal Property Securities Act 1999 (PPSA) affects you, we recommend that you seek professional advice.