The PPSA makes several key changes to floating charge law, and replaces floating charges over personal property with equivalent security interests called circulating security interests¹.

It is important to remember that the floating charge lives on outside the PPSA for all property that is not personal property such as land, mining rights and tenements and other statutory rights and licences excluded from being personal property under the PPSA. However, it would be rare to have a floating charge over these types of property, except in the unusual case that a business regularly buys and sells such property in the ordinary course.

Put another way, circulating security interests under the PPSA only relate to personal property regulated by the PPSA.

This chapter begins with an outline of floating charges and floating charge law, before moving to discuss the key issues relevant to circulating security interests under the PPSA.