- 29.1 Summary of key changes to the previous law
- 29.2 Security agreements are not available from the PPS Register
- 29.3 Super-priority security interests – PMSIs and security interests perfected by control
- 29.4 Secured parties can perfect to defeat existing security interests of which they have knowledge – knowledge is generally not relevant to priority disputes between security interests
- 29.5 45 day window to register security interests changes to 20 business days
- 29.6 Security interests over ADI accounts
- 29.7 Following collateral upon transfers
- 29.8 Extinguishment rules upon transfers of collateral
- 29.9 Security interests automatically attach to proceeds generated upon disposals of original collateral
- 29.10 Restrictive covenants against the sale of collateral or the grant of further security
- 29.11 Receivables financing
- 29.12 Tacking of further advances is permitted
- 29.13 Conflicts of laws rules
- 29 14 Serial numbered property
- 29.15 15 business day “silent equipment PMSI” risk
- 29.16 Receivers, controllers or secured parties can sell leased or retention of title property if the lease or retention of title transaction is unperfected, or trumped for priority
- 29.17 Circulating security interests (floating charges) attach immediately to after-acquired property without appropriation
The PPSA establishes four classes of serial numbered property, being motor vehicles, watercraft, aircraft and certain intellectual property rights (patents, trade marks, designs and plant breeder’s rights).
Security interests over consumer serial numbered property and commercial aircraft must be registered against serial numbers. If not registered against the correct serial number, the general rule is that the registration will be defective, subject to certain "grace periods" where the error in registration against the serial number is not the error or omission of the secured party (for example, the manufacturer subsequently changes the serial number)1. The result is that security interests will become unperfected.
Security interests over other commercial serial numbered property may be registered against its serial number.
Registration against serial numbers is advisable for all serial-numbered property because otherwise security interests are placed on serious risk of extinguishment (under section 44 of the PPSA) if the collateral is transferred2. See Chapter 21 (The extinguishment rules) for further discussion.
