- 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 a priority hierarchy for different types of security interests. There are several types of security interests that can attach and be perfected second yet defeat security interests perfected first, regardless of knowledge of the first-perfected security interest. These are predominantly PMSIs, and security interests perfected by control over principally financial assets (shares, bonds, ADI accounts – see paragraph 17.6.2 of Chapter 17 (Perfection) for a list of collateral that can be perfected against by control).
PMSIs were well known to the common law. The PPSA codifies a (much broader) version of the common law PMSI principle. Further, leases and conditional sales by retention of title transactions were not thought of as PMSIs before the PPSA, but perform a similar role, and accordingly, are rolled into the PMSI principle under the PPSA. See Chapter 18 (Priority) for discussion.
