Financial Institutions and Markets

Out of Time – Transitional PPSA Provisions No Longer Provide Protection

Contact: Matt Couper, Mark Kenney and Laura Bergan; Carter Newell (Queensland, Australia)

If you have previously been relying on the transitional provisions of the Personal Properties Securities Act 2009 (Cth) (PPSA) and you have not yet perfected your security interest by registration, a recent Victorian Supreme Court decision confirms that the impact of failing to take adequate steps to protect security interests can be severe.

The decision in Central Cleaning Supplies (Aust) Pty Ltd v Elkerton [2014] VSC 61 serves as a timely reminder that parties are no longer able to rely on the transitional provisions of the PPSA to protect their title in a security interest arising prior to 30 January 2012. Temporary protections afforded to transitional security interests under the PPSA expired on 31 January 2014.

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