Parties who have security interests registered on the Personal Property Securities Register (PPSR) dating back to its creation in 2012, need to be aware of upcoming expiry dates and ensure they renew them in time.
The PPSR commenced on 30 January 2012, allowing parties to establish the priority of their interest over property by formally registering it on the PPSR. As many secured parties registered their interests for an initial period of 7 years, these interests will begin to expire from 30 January 2019, unless they are renewed prior to the expiry date.
If a PPSR registration is not renewed prior to the expiry date, the priority of the relevant security interest will be lost and a new registration must be created. This new interest will only have priority from its date of registration and will be inferior to any interest registered before it. In addition, if the grantor of the interest becomes insolvent within 6 months following the new registration, the registration may be entirely ineffective (as it was not created within 20 business days of the original security agreement which created the interest).
Therefore, it is very important to be aware of any upcoming expiry dates and to renew them in a timely manner. A list of PPSR registrations which are approaching expiry can be obtained via the PPSR website: https://www.ppsr.gov.au/registrations-due-expire-report