PPSA UPDATE
HIANZ Reports On The Current PPSR Situation The push from HIANZ to get changes to the PPSA (Personal Property Securities Act 1999) to exclude hire from a requirement to use the register (PPSR) has been a long-winded affair...
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s with most lobbying and advocacy work, there are many hoops to jump, many minds to win over and many scenario’s that need to play out to get the desired outcome. The change to the PPSA is no different. We are happy to report that we are still making headway and as recent as late October, took a major step forward on getting the requirement for Hire to use the PPSR. There is still a lot of work to do and it may not play out exactly how we want it but it is good progress. Recent discussions had us looking at a few different options. 01. We have an agreement to move the requirement for using the PPSR out to two years from the current one year as described in section 16 of the act. 02. We are investigating a fair an true separated definition of “Hire” from “Lease”. If we can get this clearly drawn up and agreed by many interested parties, we can then have the requirement of “Hire” to be removed from the requirements of the act. Currently we fall into this definition in the act:
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- HIANZ HIRE & RENTAL 2020
03. We have in parallel to the above, Government looking at the options of running a separate register for HIANZ Hire Companies which will in effect be your asset list. This would be something that you manage (once when you add an asset and once when you dispose of the asset) and this register will take priority over the main register. The only sticking point on this is getting the financial sector’s approval and giving them the security they need on the asset against you if you are financing it. This option will take a bit of work. In the mean-time though, it is important that “hires” of any long term nature, that you register your interest in “perfection” (means you fill out the register spot on and in fullness) on the PPSR. It is as even important that any change to the hire contract (swap out of machine, change in hire period, change in hirer) are all updated asap on the register. We have had a recent issue of a company going into receivership, receiver telling the hire company they will take over the hire but the paperwork wasn’t updated and signed by the receiver and the PPSR wasn’t updated. The receiver noted this and took possession of the quite sizeable in value and physical sized equipment. The Hire company has a very lengthy and costly battle to try to get the asset back. If you need any further advice or support on this topic, please make contact with Rodney. Likewise, if you wish to assist in the true definition of “Hire” also make contact. ■
