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...

AS 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:

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. ■

Lease for a term of more than 1 year―

a.

b.

c. means a lease or bailment of goods for a term of more than 1 year; and includes—

(i) a lease for an indefinite term, including a lease for an indefinite term that is determinable by 1 or both of the parties not later than 1 year after the date of its execution; and (ii) a lease for a term of 1 year or less that is automatically renewable or that is renewable at the option of 1 of the parties for 1 or more terms, where the total of the terms, including the original term, may exceed 1 year; and (iii) a lease for a term of 1 year or less where the lessee, with the consent of the lessor, retains uninterrupted or substantially uninterrupted possession of the leased goods for a period of more than 1 year after the day on which the lessee first acquired possession of them, but the lease does not become a lease for a term of more than 1 year until the lessee’s possession extends for more than 1 year; but

does not include―

(i) a lease by a lessor who is not regularly engaged in the business of leasing goods; or (ii) a lease of household furnishings or appliances as part of a lease of land where the use of the goods is incidental to the use and enjoyment of the land; or (iii) a lease of prescribed goods, regardless of the length of the lease term

TROJAN bATTERY COmPANY AND YHI ENERGY

Distribution company yHI started out in tyres and wheels but carved out a bigger niche in energy, proudly the master distributor for Trojan Battery in New Zealand and Pacific Islands.

ESTABLISHED IN AUCKLAND in 1995, YHI (New Zealand) Ltd is a subsidiary of YHI International Ltd and has both Singaporean and New Zealand ownership. After starting out representing Viper and Enkei alloy wheels, the famous Advanti Racing brand of alloys arrived soon after, with Advanti wheels now being proudly supplied to YHI’s sponsored Formula 1 Team. While the comprehensive automotive division is a strong segment of the YHI picture, energy products were introduced in 2001 and are currently a huge and ever-growing side of the business, with the innovative range covering solar power, electric vehicle charging, automotive, marine and motive power solutions, as well as offering UPS and power systems solutions and services. In February 2019, YHI (New Zealand) Ltd was appointed the New Zealand & Pacific Islands’ master distributor for Trojan Battery and now proudly carries deep cycle AGM, deep cycle flooded, silver line, solar industrial flooded and lithium batteries for all of the applications Trojan famously caters to – including golf, renewable energy, marine, mobile elevated work platforms and other industrial applications. Trojan’s purpose is to provide clean and reliable energy storage solutions that enhance the way people live and work around the world, and that motive has been the driving force for almost 100 years of Trojan’s battery manufacturing since their establishment in 1925. With the invention of the golf car battery for the Autoette vehicle in 1952, Trojan Battery Company pioneered the development of deep-cycle battery technology for the golf industry. For Trojan, this began a legacy of leadership and innovation that prevails today in the global, deep-cycle markets spanning applications for golf and utility vehicles, renewable energy, transportation, floor machines, aerial work platforms, marine and recreational vehicles. YHI (New Zealand) Ltd now has over 90 staff operating in eight locations across New Zealand: Auckland, Hamilton, Tauranga, Napier, Wellington, Christchurch, Dunedin and Invercargill and a third-party warehouse in Palmerston North and New Plymouth. YHI says this network represents the best distribution network of any wholesaler in the energy industry, meaning resellers don’t need to hold the stock themselves. Among YHI’s staff is a dedicated team of Energy Account Managers based throughout the country. “Our team take an invested interest in supporting the success of their customers’ businesses, and we as a company aim to continuously build stronger customer relationships with quality products and distinctive customer service,” says YHI Energy’s Divisional Manager, Aaron Gillon. YHI’s support also includes account managers providing localised assistance and training on an ongoing basis at YHI’s branches, or at retailers’ premises if requested. Larger scale training can also be arranged for specific products and, where possible, includes manufacturer input. In addition, YHI’s commitment to customers at a local level is enhanced by call centre staff based at each location, and nationally with online product resources including downloadable product brochures and a comprehensive website. ■