Don’t be confused by the title of the recently introduced “Personal Property Securities Act”. The misnomer regarding the title of this Act is that it only applies to “personal” property and not the property of companies, or business or trading assets.
The Act focuses on not only personal assets (such as personal share portfolios, art collections and thoroughbred horses), but also business and trading assets such as motor vehicles, plant and equipment, trading stock, and intellectual property.
The Act recognises and enables you to register not only common garden variety debentures and securities but also retention of title, leasing of personal property or business assets including plant and equipment, security over the assets of individuals who have given personal guarantees (containing charging provisions), and recognises trust arrangements (not previously recorded or registered elsewhere).
Take out lesson:
If your business undertakes any of the above activities or you require personal guarantees from third parties, you must now be aware of the implications of failing to register on the Personal Property Securities Register.
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Lawyers, accountants, corporate advisors and lenders must review and cross reference official documents from a range of sources, to verify facts at the beginning of every matter.