If your transitional security interest (TSI) has not yet been registered on the Personal Property Securities Register (PPSR), you need to register it before midnight on 31 January 2014 (Canberra time) to take advantage of “temporary perfection” and preserve your priority.
A TSI may still be registered on the PPSR after 31 January 2014, however, choosing to hold off registering until after that date will result in you losing the benefit of the transitional provisions and your priority will be effective only from the date of actual registration rather than the earlier dates provided for under those transitional provisions.
Registering your TSI after January 31 will mean that another person with a security interest in the same collateral with a higher priority ranking (for example, a secured party who registered during the transitional period) may be paid out ahead of you where a default occurs by the grantor or that you will lose your security interest altogether in an insolvency situation.
Examples of commercial arrangements that may be TSIs not yet registered on the PPSR are:
- leases/hiring agreements (see PPS leases above)
- retention of title supplies
- commercial consignments.
Registration of TSI is free.