Security interests registered on the Personal Property Securities Register (PPSR) in 2012 for a period of 7 years (the other registration period options being 25 years or indefinitely – provided that the collateral is not consumer property) are due to expire this year.
The PPSR, an electronic register of security interests, established under the Personal Property Securities Act 2009 (Cth), commenced seven years ago on 30 January 2012.
The relevance of this anniversary is that any such registrations made on or after 30 January 2012 but prior to today’s date in 2012 have, if not already extended, expired.
Whilst registrations on the PPSR can be extended, extensions must be made prior to the expiry date. If you’ve missed the extension date and your registration has expired, you can re-register your security interest.
However, if you perfected your security interest by registration on the PPSR (rather than by possession or control), the expiry of your registration would lead to a loss of perfection. As a result, your original registration may have lost its priority, for example to a secured party who registered after your original registration and remains registered on the PPSR. To clarify, the expiry of your registration on the PPSR would not lead to the underlying security document becoming invalid, just, potentially, your security interest losing its priority over competing registered security interests.
To avoid this, we recommend that you review all of your existing registrations and confirm their expiry dates. Any registrations which are due to expire, but are required to stay on foot, should be extended as soon as possible. Any registrations which have already expired but are still required, should be re-registered as soon as possible.
Although the PPSR does not notify you when a PPSR registration is about to expire, the PPSR will, provide a useful report of the expiry dates of your existing registrations upon request. This report allows you to monitor which of your PPSR registrations require extension (or should be discharged as they are no longer required). This report can be requested here.