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PPS Act and the three little pigs1 November, 2013
It took the three little pigs three goes to get it right.
Practitioners on the other hand may have only one chance to get it right when it comes to making sure clients know about the end of the transition period under the Personal Property Securities Act 2009 (PPS Act).
The PPS Act transition period comes to an end on 31 January 2014. Are you prepared for this date?
In some circumstances, it may be appropriate to notify clients of the end of the transition period and explain the consequences of having a non-migrated transitional security interest.
For example, you should notify a client about the end of the transitional period where you are acting for a client whose terms of trade include a retention of title clause.
Usually agreements which include retention of title clause are non-migrated transitional security interests.
Non-migrated transitional security interests must be registered or otherwise perfected before 31 January 2014 or the security holder will lose any priority and become an unsecured creditor.
My reference to the three little pigs is not a coincidence. Did you know that in the United States, PPSA is the Pigging Products & Services Association?
If you are looking for more information about the PPS Act transition period, see the LPLC article in the November edition of the Law Institute Journal.
You will also find information about the transition period on the PPSR website: www.ppsr.gov.au
For example, see the fact sheet titled: Transitional Provisions: http://www.ppsr.gov.au/AsktheRegistrar/FactSheets/Documents/Transitional-provisions.pdf