PPSR stands for Personal Property Securities Register. Personal Property Security (PPS) reform brings the different Commonwealth, State and Territory laws and registers regarding security interests in personal property under one national system. PPS reform introduces the Personal Property Securities Act 2009 (Cth) and a single national online PPS register.
The PPSR will replace numerous State, Territory and Commonwealth electronic and paper registers. Existing information on these registers will be migrated to the PPSR.
The PPSR will allow lenders and businesses to register their security interests. Secured parties, buyers and other interested parties can search the PPSR to find out if a security interest is registered over the personal property.
The register will be used to determine priority for secured creditors in the case of debtor default or liquidation.
Secured parties and potential secured parties will be able to use it to search for and register security interests in personal property. The PPSR will be web based, available in real time and accessible 24 hours a day, 7 days per week.
Currently, the law and practice about personal property securities differs between each State and Territory within Australia. More than 70 Commonwealth, State and Territory Acts regulate personal property securities. As a result, the law and practice concerning a particular personal property security vary. This uncertainty unnecessarily increases the cost of transactions involving personal property securities.
Introducing a national PPSR will bring most of this information together into one national system. The aim of the personal property securities reform is to improve the ability of individuals and businesses, to use all their property in raising capital. Personal property securities reform has been successful in the United States, Canada and New Zealand.
The date of the introduction of the Personal Property Securities Register (PPSR) is targeted to be 30 January 2012 but could be an even later date. The commencement date for the PPSR had previously been set for 31 October 2011.
Veda's PPSR Pre-load Registration service is currently available to help bulk upload existing security interests into the PPSR. Assuming a release date of 30 January 2012, Veda will provide this service until 31 October 2011.