PPSR
Common mistakes in PPSR registrations By Simon Read*
Having performed over a thousand PPS Assurance Reviews for our clients, we’ve seen just about every PPS registration error that can be made. In fact, over 95% of the reviews we’ve performed have uncovered some level of administrative errors. Finding out your PPS registration fails to comply with the rigid requirements of the PPSA can be an expensive experience. A rejection of your claim will see you relegated to the ranks of an unsecured creditor, and we know what that means – little, if any, debt recovery. If you’re still using the Government’s PPSR registration platform, you’ll be aware of its complexity. The former Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, recently released her research citing the need for a major overhaul of the PPSR process. It’s certainly not just the fault of the Government’s PPS Registry portal. The PPSA is a tough piece of legislation using a language that is foreign to many. Knowing the common registration errors will help you understand how best to register a security interest on the PPSR. The following guide is just that, a guide, and will assist your understanding of the process when performing PPSR registrations.
What to consider when registering on the PPSR Simon Read
So, how hard can it be? Well, it turns out there are at least 11 variables
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involved in each registration. Keep reading, we’ll explain all 11 variables and how they relate to your security interest.
Secured Party Group Have you included the Trust and Trustee if you’re a trading trust? For example, if a service provider performing PPSR registrations for their client uses their own name as the secured party group and their client’s names as the grantors, all their registrations will be invalid.
Collateral Class Make sure you select the appropriate collateral class. There are 28 of them but only a handful are used regularly. We often see motor vehicles incorrectly registered as Other Goods with their serial numbers recorded in the Collateral Description.
Collateral Type Have you selected the correct collateral type? Consumer registrations are of no help if you have a commercial relationship with your customer.
Collateral Description How’s your collateral description? The broader the better, with at least some reference to the nature of your collateral. Whilst a collateral description is not necessarily mandatory, it makes a lot of sense to provide a description. Just make sure it’s correct and broad enough to cover any future changes in the nature of the goods you supply.
