Did you know if you plant or equipment is on another business’s property and they go into receivership you could lose it!?!?
If your plant or equipment is on the premises of another business that goes into receivership and you have not registered your interest using the Government’s Personal Property Security Register (PPSR) then it may go to the receiver and be included in the fire sale of the business, not able to be recovered by you!
The PPS Register is the online register where details of security interest in personal property can be registered and searched. The Insolvency and Trustee Service Australia is the Australian Government agency responsible for administering the PPSR.
If your plant items are used away from your business premises you should register them on the Personal Property Security Register at www.ppsr.gov.au – This is very important!
Further, if you want to ensure your security interest gets ‘Super Priority’ and you rank above general creditors if a liquidation does take place then register a Purchase Money Security Interest (PMSI) on the PPSR website.
For a PMSI to be effective it must be registered within the time frame of the law (differs depending on item) and specifically identifiable.
Specifically identifiable means that the item can be identified by a VIN, serial number etc. If the collateral item can be specifically identified then use these specific details when registering this item on the PPSR website. In the past, a motor vehicle has been unable to be recovered by the owner as the VIN recorded was one digit incorrect – be careful!!
Most commonly a PMSI is likely to occur when a plant item is financed using that item of plant as security. The finance company will register a PMSI on that plant item to ensure it is ability to recover it.
You may think it will never happen to you but the economy is going through tough times and it’s better to be SAFE than SORRY. So for the sake of a little extra time at the computer please register your plant and equipment.