- 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
Secured parties can register a future security interest on the PPS Register as soon as they have reasonable grounds to believe that a security interest will be taken in the future1.
Secured parties are likely to have reasonable grounds to believe they will take a security interest where, for example, they are in discussions, or negotiating a transaction, with a debtor/grantor and the transaction's close is approaching, with reasonable grounds to think the transaction will complete. It does not matter that the security agreement has not yet been entered into or that the security interest has not yet attached2.
This allows secured parties to pre-register, to secure a first and best ranking priority time for their security interest.
The best practice for secured parties is to register against a grantor well before financial close of their transactions. Care is required because secured parties must have reasonable grounds to believe a security interest will be taken in the future in order to register. However, given the PPSA favours the first to register because the general rule is that priority is by priority time (time of registration in most cases), secured parties should take a robust view, and register against a grantor as soon as reasonably possible.
The PPSA system allows secured parties to get the comfort of registering their security interest against a grantor and collateral before releasing loan funds, or agreeing to extend credit to a grantor.
