Who does this affect?

Financiers who lend on a secured basis, securitisers, equipment lessors, sellers of goods on retention of title arrangements.

What do you need to do?

Start thinking about personal property securities reform now so that you can take the opportunity to provide feedback on the proposed reforms before they are introduced. We can help.

Author
Helena Busljeta  
Special Counsel - Precedents

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John Canning  
Partner
T +61 2 9296 2098

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Perth
Nicholas Creed  

Brisbane
Berkeley Cox  

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A consultation draft of the Personal Property Securities Bill 2008 (Bill) was released for public comment today.

The Bill will reform the law on personal property securities (PPS) by establishing a national system for the registration of security interests in all property other than land. It will include new rules for determining priority between competing security interests in the same personal property. The new system will be in place by 2010.

It will affect the way security is taken over almost every form of property other than land. This will affect the business of financiers. However, the legislation will also affect transactions which are currently not regarded as securities and this will impact on the business of lessors and suppliers of goods.

The PPS reform process so far

There has been a lengthy period of consultation between the Attorney-General's department and industry before the release of the Bill. In April 2006, the Standing Committee of Attorneys-General issued an options paper to gauge the level of support for PPS reform. This was followed by three detailed discussion papers in November 2006 and March and April 2007 to refine the policy behind the reform. Mallesons was involved in the consultations through dialogue with the Attorney-General's department and its submissions. Copies of the options paper and discussion papers, together with Mallesons’ responses, can be found in our previous Review.

What should you be doing now?

• Consider whether you want to provide submissions on the Bill. The consultation period gives you an opportunity to provide feedback on the proposed reforms before they are introduced. You have until 15 August 2008 to provide comments.
• Learn how the PPS system will affect your business. The Attorney-General’s department will present a series of seminars on the Bill during 26 to 29 May 2008 in Sydney, Melbourne, Brisbane and Perth. Each seminar will provide an overview of the Bill and its effect. More information on the seminars can be found here.
• Start planning for the transition to the PPS system.

Further information

A copy of the Bill together with commentary can be viewed here.

If you want more information on PPS, please contact any of the Mallesons PPS team members.