The Personal Property Securities Register ("PPSR") commenced operation on 30 January 2012.
A large number of securities registered under that Act by financiers were for 7 years.
As a result, there will be a significant number of registered security interests automatically expiring on 30 January 2019.
Any security holder should be reviewing their registrations regularly and deleting registrations that are no longer applicable.
However, there is no warning provided by the PPSR that registrations are about to expire. Therefore, security holders who take no action in respect of registrations that are due to expire may find themselves without security from 31 January 2019.
Readers should note that current registrations can only be re-registered if they remain current.
Therefore, if a registration expires, a security holder will have to register a new security interest; this may result in a loss of priority if there are subsequent security interests lodged in respect of the secured personal property.
I urge all security holders to check their registrations on the PPSR regularly.
In particular, I urge all security holders who lodged seven year registrations in 2012 to check that those registrations are still current, and if so to take steps to reregister them.
Hayden Starke Chambers