LPLC has created this Key Risk Checklist for practitioners dealing with Personal Property Securities matters.
What's on this page?
Office management
- allocating the searching of the personal property securities register (PPSR) and registrations to one person in the office and making sure they are fully trained
- specifying a partner who must sign off on any PPS Act issues on files
- ensuring that any registration tokens, original signed security agreements and releases of security interests relating to PPS Act registrations are stored securely.
Processing
- Remind you to consider the PPS Act in every transaction especially at the commencement of the transaction and confirm in your retainer letter when PPS Act issues will and will not be addressed.
- Obtain and confirm instructions from clients about any PPS Act issues.
- Confirm that a PPS Act clause has been included where necessary in documents prepared by your firm.
- Check that a PPS Act clause is included where necessary in documents reviewed by your firm and which have been received from a client or other party.
- Review existing client documents to check whether they include a PPS Act clause and/or need to be amended to include a PPS Act clause.
- Identify registration deadlines.
- Confirm registration deadlines have been met.
- Check that original signed security agreements are not left on files when closing.
- Identify whether a security interest is a purchase money security interest.
- Collect all necessary information to effect a valid registration on the PPSR.
- Ensure the correct information has been included on the PPSR.
- Keep track of security interests which you have registered for a client
Searching
Reporting
- The effect of any PPS Act clause in any transaction documents.
- The effect of waiving any rights under the PPS Act.
- The need to obtain a release of any PPS Act registrations.
