Table 5 summarising the relevance of certain classes of collateral under the PPSA
| Nine (9) classes of original collateral - must register against one class | Accession, commingling and processing rules apply?1 | Perfection possible by control? | Inventory can collateral be?2 | Circulating assets?3 | Serial No'ed property?4 | PMSI possible?5 |
|
Agriculture (a) crops6 (b) livestock7 |
Yes, if goods | No | Yes | Possibly | No | Possibly12 |
|
Aircraft (a) aircraft (b) aircraft engines (c) airframes (d) helicopters |
Yes, because aircraft are goods | No | Yes, but unlikely | Unlikely to be circulating assets | Yes | Yes13 |
|
All present and after-acquired property |
Yes, if goods | Potentially, if financial collateral8 | Possibly | Possibly | Possibly10 | Possibly14 |
|
All present and after-acquired property, except... |
Yes, if goods | Potentially, if financial collateral9 | Possibly | Possibly | Possibly11 | Yes15 |
Table summarising the relevance of certain classes of collateral under the PPSA... continued
| Nine (9) classes of original collateral - must register against one class | Accession, commingling and processing rules apply?1 | Perfection possible by control? | Inventory can collateral be?2 | Circulating assets?3 | Serial No'ed property?4 | PMSI possible?5 |
|
Financial property (a) chattel paper (b) currency (c) documents of title (d) investment instruments (e) negotiable instruments (f) intermediated securities |
No |
Sometimes Investment instruments Negotiable instruments Intermediated securities |
Possibly, but unlikely | Possibly, in particular currency and negotiable instruments | No | Very unlikely - PMSIs not possible over investment instruments, intermediated securities, "monetary obligations" or negotiable instruments |
|
Intangible property15 Any personal property other than (a) financial property (b) goods (c) intermediated securities |
No | Sometimes; ADI accounts | Possibly, but unlikely | Possibly, particularly accounts and ADI current accounts | Yes - intellectual property - patents, trade marks, designs and plant breeder's rights | Possibly, eg acquisition finance for a goodwill business which owns IP rights |
|
Motor vehicles |
Yes | No | Possibly | Possibly, if grantor has standing authority to dispose, or inventory | Yes | Yes |
|
Other goods16 |
Yes | Possibly, but only for space objects | Possibly | as above | No | Yes. Not for domestic or household property. |
|
Watercraft |
Yes | No | Possibly | as above | Yes | Yes. Not for domestic, household property |
|
Proceeds (see following section) |
Possible, if proceeds are goods | Possibly, depending on type of proceeds | Possibly, depending on type of proceeds | Possibly, depending on type of proceeds | Possibly, depending on type of proceeds | Yes, PMSIs attach to proceeds with same PMSI super priority |
Notes:
1 These apply only to goods.
2 If inventory:
(a) can nominate that secured party has control in financing statement;
(b) must perfect PMSIs before supply (goods) or attachment (other collateral);
(c) extinguishment rules may not apply on disposal of collateral.
3 If circulating assets, can nominate whether secured party has control in financing statement.
4 If serial numbered property:
(a) if perfect by registration, should check serial number is correct;
(b) if serial number incorrect, purchasers or lessees may take free of security interest.
5 If PMSI:
(a) must perfect by registration, and perfect early;
(b) must nominate PMSI on financing statement;
(c) must perfect inventory PMSIs before supply (goods) or attachment (other);
(d) must perfect equipment PMSIs within 15 business days.
6 which can include aquaculture and tress
7 including progeny and unshorn wool
8 for example shares, bonds, ADI accounts, etc.
9 for example shares, bonds, ADI accounts, etc.
10 could include motor vehicles, intellectual property, watercraft or aircraft
11 could include motor vehicles, intellectual property etc.
12 but it depends on the type of the agricultural asset, PMSIs appear possible for acquisitions of say livestock
13 PMSI likely as expensive assets, so acquisition on finance likely. Note that sale and leaseback transactions cannot be PMSIs
14 if new assets are acquired on finance. Separate PMSI registration required? PPS Regulations Schedule 1, Part 3, para 3.1
15 for example, accounts, ADI accounts and intellectual property
16 which excludes agriculture, aircraft, motor vehicles and watercraft
