- 22.1 Registration
- 22.2 20 business day registration window – Corporations Act 2001 (Cth) section 588FL
- 22.3 Financing statements
- 22.4 The PPS Register is a “red flag” only – there is no “title by registration”
- 22.5 Requesting copies of security agreements
- 22.6 Financing change statements
- 22.7 Removal of pre-registrations where no security interest was ultimately taken
- 22.8 Registration by class of collateral
- 22.9 Registration against proceeds
- 22.10 Periods of registration – seven (7) years, 25 years or an indefinite period
- 22.11 Registration is only effective from the time the register shows the interest – so “search, register, search”
- 22.12 Verification statements
- 22.13 Search results - establishes registration time and priority time
- 22.14 Registration of PMSIs
- 22.15 Pre-registration before security interests attach
- 22.16 Inventory PMSIs must be pre-registered
- 22.17 "Silent equipment PMSI" risk
- 22.18 Amendment demands and amendment notices – cleaning up a cluttered register
- 22.19 Defective registrations
- 22.20 Other defects in registrations – PMSIs and “seriously misleading” registrations
- 22.21 Consequences of defective registrations
- 22.22 Registration, searches and privacy
- 22.23 Prescribed information, and prohibited registrations – impounded motor vehicles, proceeds of crime, freezing orders
- 22.24 Registration details for trusts
- 22.25 Applications for extension of time
A defective registration does not perfect a security interest. Certain defects only (broadly, defects which do not arise by error or omission of the secured party) are given a second chance with "grace periods", as explained below.
A defective registration that does not arise by error or omission of the secured party, but rather (for example) because the manufacturer or IP Australia subsequently changes a serial number, can validly perfect a security interest for a maximum of five (5) years (60 months), provided that the secured party does not know about
it1. Once the secured party has actual or constructive knowledge of the defect, the registration becomes invalid at the end of five (5) business days of the secured party having that knowledge, actual or constructive2.
The moral of the registration story is “search, register, search”, and double check (at the very least) that:
(a) the grantor’s details are correct; and
(b) any serial numbers for serial numbered property that must be registered against serial numbers (all consumer serial numbered property, and commercial aircraft) are correctly registered; and
(c) PMSIs are noted as PMSIs on the PPS Register.
