The transitional period provided by the Personal Property Securities Act (PPSA) ends in approximately two weeks.
While debate exists as to whether the transitional period will conclude at midnight on 29 January 2014 or at midnight on 31 January 2014, in either event it is important that you act as soon as possible to ensure that you and your business are PPSA-compliant.
As we have set out in previous Updates, compliance with the PPSA may be required by any person or entity (including trusts and inter-company arrangements) which:
- takes security / rights in assets owned by others (eg secured lending); and/or
- owns assets which are in the possession of another (eg leasing, retention of title, consignment, bailment).
If you enter such arrangements, it is important that you ensure that any existing or future rights are protected under the legislation. If you fail to do so, those rights may be lost.