Missed a PPSR renewal? (not if you use Access PPSR!) We're regularly asked what to do when a PPSR renewal has been missed. There is no ideal solution we're afraid. They all come with drawbacks. The best option depends on the type of security (finance, hire or sale), your exposure, the customer risk assessment and, commercially, whether the grantor is a key customer. In this article we'll cover three general options to consider (for informational purposes only, Access Intell is not a law firm and are therefore unable to provide legal advice). This article only applies to the supply of goods on credit subject to retention of title terms. Action beyond the scope of this article is needed to restore security for long term rental or hire of equipment (PPS Leases) or asset financing. We have several referral partners that can provide legal advice. We would recommend speaking to Cronin Miller Litigation Lawyers, LawyersAU, Oakbridge Lawyers, Patane Lawyers, Results Legal or Turks Legal if you have a specific issue to address.
The PPS Register
Firstly, let’s talk about PPSR more generally. The PPS Register is the online government noticeboard that facilitates the registration and searching of security interests. Registering an interest is the legal way to register your rights (and priority) over your goods, providing vital financial protection to companies that:
· provide trade credit for goods,
· hire equipment, or
· provide asset finance.
Cost is minimal and security usually lasts for seven years.
The register is a simple concept that is complicated in application. That’s why Access Intell created Access PPSR, our automated, accurate PPSR registration and management product. With pre-set profiles and built-in validation tools, our one-click registrations are right every time. You’ll never miss a PPSR renewal again!
On to the options
The best solution is to always ensure registrations are renewed before the expiry date. However, there are still options in the unfortunate event of a missed PPSR renewal. Each of the following three options has disadvantages, and so you must choose what is best for your business. Things to consider include the type of security, your exposure, the customer risk assessment and, commercially, whether the customer in question is a key customer.
1. The best option is to get your customer to signa new application (accepting your terms and conditions of trade) and register straight away. This only covers future supplies from the date of the new registration (nothing already supplied), and it may be problematic getting them to sign terms and conditions again for continuing supplies.
2. The next best option is to approach the court and get an extension of time in which to renew. This tends to be costly, time consuming and not guaranteed. The courts typically grant the extension on the condition that they can withdraw if it is later found a third party was prejudiced by the extension of time.
3. The last option is to register again and cross your fingers. For the sale of goods on credit, subject to retention of title, your security will be ‘ineffective’ for six months from the date of registration, due to the application of S588FL of the Corporations Act. Once you get past the six months your security will be effective again provided you entered into the original agreement after January 2012.
Key Takeaway
A better way to manage PPSR is in reach. There is an easier, more reliable way to manage your registrations and never miss a renewal again – contact the Access Intell team for a demo of our Access PPSR product today.
