NZ Credit & Finance Institute
Member
Governance New Zealand
Associate Member
RITANZ
New Zealand General Member

PPSA Advisory

personal property securities act - key legislation for suppliers of goods on credit

What Is The PPSA?

The PPSA, or Personal Property Securities Act, is a key piece of legislation introduced into New Zealand in 2002. It was introduced because the existing law at the time relating to personal property securities was complex and inconsistent. The PPSA brought consistency and some new legal concepts, such as:

+ one fundamental concept for “security interest” and a set of uniform rules for all forms of security interests;

+ a comprehensive set of rules to resolve priority conflicts between security interests; and

+ therefore provides for a much greater degree of certainty than that provided by the prior laws.

This may seem rather esoteric, but the PPSA has real practical impacts, particularly for businesses supplying goods on credit. Retention of Title (RoT) clauses were non-registrable securities pre-PPSA but now fall under the present law. Thus any RoT will generally be competing with other registrable securities (such as a bank’s security over all company assets) meaning that, like it or not, you need to understand and work within the new PPSA legal framework in order to retain any security position.

BizEnhanz can help with explaining to you the practical requirements of this law as it relates to your particular business and the steps you need to take to ensure any contractual security rights you have are maintained

Key Services

PPSA Explained

Get practical advice as to how the PPSA affects your business. Businesses supplying goods on credit need to pay particular attention as any contractual retention of title rights you have may be lost unless specific steps are taken

Terms of Trade

Registering any PPSA rights on the Personal Property Securities Register must be underpinned by appropriate contractual rights. This means a contract and terms of trade containing any relevant clauses must exist. Get clarification on what you need to do from the PPSA team

Registration Services

Registering on the Personal Property Securities Register is not complex, but certain steps need to be taken correctly and ongoing administration can get quite onerous. Let the PPSA team take the strain for you – contact us to find out how.

PPSA Business Process

To maximise the benefits that utilising the PPSA can bring to your business you need to have good PPSA business processes. These need not be complex or time consuming to administer but nevertheless should be in place. get expert advice on how best to do this for your business.

Summary

  • For most businesses the Personal Property Securities Act (PPSA) is a key piece of legislation that must be central to your existing credit processes. Any deficiencies in your contracting and registration processes can have a significant detrimental impact on your security position
  • Any contractual security interests that you have, for instance Retention of Title, must be documented and registered on the Personal Property Security Register in order to maintain your security priority against third parties. This is particularly important in an insolvency
  • Ensure your current contracts and terms of trade are up to date and contain all relevant clauses specific to your business and security requirements
  • Ensure you correctly register all security interests on the PPSR. Seek advice if necessary
  • It may also be a good idea to review your current business processes as they relate to contracting with customers and registering on the PPSR. You will also need to take into account processes for registration amendments as required and any re-registrations that are necessary.

More Information

BizEnhanz is pleased to offer a free, no obligation 15 minute phone consultation to discuss any specific PPSA questions you may have.
Please contact me to arrange for a time for my FREE phone consultation