Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Download] [Help]

PERSONAL PROPERTY SECURITIES ACT 2009


TABLE OF PROVISIONS

           Long Title

            

CHAPTER 1--Introduction
            

   PART 1.1----PRELIMINARY

   1.      Short title  
   2.      Commencement  
   2A.     Schedule 1  
   3.      Guide to this Act  

   PART 1.2----GENERAL APPLICATION OF THIS ACT

   4.      Guide to this Part  
   5.      Crown to be bound  
   6.      Connection with Australia  
   7.      Application in the external Territories  
   8.      Interests to which this Act does not apply  

   PART 1.3----DEFINITIONS

           Division 1--Introduction

   9.      Guide to this Part  

           Division 2--The Dictionary

   10.     The Dictionary  
   11.     Application of the Acts Interpretation Act 1901  

           Division 3--Concepts relating to security interests and personal property

   12.     Meaning of security interest  
   13.     Meaning of PPS lease  
   14.     Meaning of purchase money security interest  
   15.     Meaning of intermediated security and related terms  
            

CHAPTER 2--General rules relating to security interests
            

   PART 2.1----GUIDE TO THIS CHAPTER

   16.     Guide to this Chapter  

   PART 2.2----SECURITY INTERESTS: GENERAL PRINCIPLES

   17.     Guide to this Part  
   18.     General rules about security agreements and security interests  
   19.     Enforceability of security interests against grantors--attachment  
   20.     Enforceability of security interests against third parties  
   21.     Perfection--main rule  
   22.     Perfection--goods possessed by a bailee  

   PART 2.3----POSSESSION AND CONTROL OF PERSONAL PROPERTY

   23.     Guide to this Part  
   24.     Possession  
   25.     Control of an ADI account  
   26.     Control of intermediated securities  
   27.     Control of investment instruments  
   28.     Control of a letter of credit  
   29.     Control of negotiable instruments that are not evidenced by a certificate  

   PART 2.4----ATTACHMENT AND PERFECTION: SPECIFIC RULES

           Division 1--Introduction

   30.     Guide to this Part  

           Division 2--Proceeds and transfer

   31.     Meaning of proceeds  
   32.     Proceeds--attachment  
   33.     Proceeds--perfection and temporary perfection  
   34.     Transferred collateral--temporary perfection after transfer  

           Division 3--Collateral returned to grantor or debtor

   35.     Returned collateral--from bailee  
   36.     Returned collateral--negotiable instruments and investment instruments  
   37.     Returned collateral--following sale or lease  
   38.     Returned collateral--accounts and chattel paper  

           Division 4--Relocation of collateral or grantor to Australia etc

   39.     Relocation--main rule  
   40.      Relocation--intangible property and financial property  

   PART 2.5----TAKING PERSONAL PROPERTY FREE OF SECURITY INTERESTS

   41.     Guide to this Part  
   42.     Application of this Part  
   43.     Taking personal property free of unperfected security interest  
   44.     Taking personal property free of security interest if serial number incorrect or missing  
   45.     Taking motor vehicles free of security interest  
   46.     Taking personal property free of security interest in ordinary course of business  
   47.     Taking personal, domestic or household property free of security interest  
   48.     Taking currency free of security interest  
   49.     Taking investment instrument or intermediated security free of security interest in the ordinary course of trading  
   50.     Taking investment instrument free of security interest  
   51.     Taking intermediated security free of security interest  
   52.     Taking personal property free of temporarily perfected security interest  
   53.     Rights of secured party and transferee on taking personal property free of security interest  

   PART 2.6----PRIORITY BETWEEN SECURITY INTERESTS

           Division 1--Introduction

   54.     Guide to this Part  

           Division 2--Priority of security interests generally

   55.     Default priority rules  
   56.     How a security interest is continuously perfected  
   57.     Priority of security interests perfected by control  
   58.     Priority of advances  
   59.     Priority rules and intervening security interests  
   60.     Transfer of security interests does not affect priority  
   61.     Voluntary subordination of security interests  

           Division 3--Priority of purchase money security interests

   62.     When purchase money security interests take priority over other security interests  
   63.     Priority between competing purchase money security interests in collateral  
   64.     Non-purchase money security interests in accounts  
   65.     Possession of goods shipped by a common carrier  

           Division 4--Priority of security interests in transferred collateral

   66.     Application of this Division  
   67.     Priority when transferor-granted interest has been continuously perfected  
   68.     Priority when there is a break in the perfection of the transferor-granted interest  

           Division 5--Priority of creditors, and purchasers of negotiable instruments, chattel paper and negotiable documents of title

   69.     Priority of creditor who receives payment of debt  
   70.     Priority of person who acquires a negotiable instrument or an interest in a negotiable instrument  
   71.     Priority of person who acquires chattel paper or an interest in chattel paper  
   72.     Priority of holder of negotiable document of title  

           Division 6--Priority of other interests

   73.     Priority between security interests and declared statutory interests  
   74.     Execution creditor has priority over unperfected security interest  
   75.     Priority of security interests held by ADIs  
   76.     Priority of security interests in returned goods  
   77.     Priority of certain security interests if there is no foreign register  

   PART 2.7----TRANSFER OF INTERESTS IN COLLATERAL

   78.     Guide to this Part  
   79.     Transfer of collateral despite prohibition in security agreement  
   80.     Rights on transfer of account or chattel paper--rights of transferee and account debtor  
   81.     Rights on transfer of account or chattel paper--contractual restrictions and prohibitions on transfer  
            

CHAPTER 3--Specific rules for certain security interests
            

   PART 3.1----GUIDE TO THIS CHAPTER

   82.     Guide to this Chapter  

   PART 3.2----AGRICULTURAL INTERESTS

   83.     Guide to this Part  
   84.     Relationship between security interest in crops and interest in land  
   84A.    Attachment of security interests to crops while they are growing and to the products of livestock  
   85.     Priority of crops  
   86.     Priority of livestock  

   PART 3.3----ACCESSIONS

   87.     Guide to this Part  
   88.     Continuation of security interests in accessions  
   89.     Default rule--interest in accession has priority  
   90.     Priority interest in whole--before security interest in accession is perfected  
   91.     Priority interest in whole--security interest in accession attaches after goods become accession  
   92.     Secured party must not damage goods when removing accession  
   93.     Reimbursement for damage caused in removing accessions  
   94.     Refusal of permission to remove accession  
   95.     Secured party must give notice of removal of accession  
   96.     When person with an interest in the whole may retain accession  
   97.     Court order about removal of accession  

   PART 3.4----PROCESSED OR COMMINGLED GOODS

   98.     Guide to this Part  
   99.     Continuation of security interests in goods that become processed or commingled  
   100.    Perfection of security interest in goods that become processed or commingled applies to product or mass  
   101.    Limit on value of priority of goods that become part of processed or commingled goods  
   102.    Priority where more than one security interest continues in processed or commingled goods  
   103.    Priority of purchase money security interest in processed or commingled goods  

   PART 3.5----INTELLECTUAL PROPERTY

   104.    Guide to this Part  
   105.    Implied references to intellectual property rights  
   106.    Intellectual property licences and transfers of intellectual property  
            

CHAPTER 4--Enforcement of security interests
            

   PART 4.1----GUIDE TO THIS CHAPTER

   107.    Guide to this Chapter  

   PART 4.2----GENERAL RULES

   108.    Guide to this Part  
   109.    Application of this Chapter  
   110.    Rights and remedies  
   111.    Rights and duties to be exercised honestly and in a commercially reasonable manner  
   112.    Rights and remedies under this Chapter  
   113.    Recovering judgment or issuing execution does not extinguish a security interest in collateral  
   114.    Rights and remedies under this Chapter are cumulative  
   115.    Contracting out of enforcement provisions  
   116.    Application while there is a receiver or another controller of property  
   117.    Obligations secured by interests in personal property and land  
   118.    Enforcing security interests in accordance with land law decisions  
   119.    Relationship with consumer credit legislation  
   120.    Enforcement of security interests in liquid assets--general  
   121.    Enforcement of security interests in liquid assets--notice to higher priority parties and grantor  

   PART 4.3----SEIZURE AND DISPOSAL OR RETENTION OF COLLATERAL

           Division 1--Introduction

   122.    Guide to this Part  

           Division 2--Seizing collateral

   123.    Secured party may seize collateral  
   124.    Secured party who has perfected a security interest in collateral by possession or control  
   125.    Obligation to dispose of or retain collateral  
   126.    Apparent possession of collateral  
   127.    Seizure by higher priority parties--notice  

           Division 3--Disposing of collateral (including by purchasing collateral)

   128.    Secured party may dispose of collateral  
   129.    Disposal by purchase  
   130.    Notice of disposal of collateral  
   131.    Duty of secured party disposing of collateral to obtain market value  
   132.    Secured party to give statement of account  
   133.    Disposing of collateral free of interests  

           Division 4--Retaining collateral

   134.    Proposal of secured party to retain collateral  
   135.    Notice of retention of collateral  
   136.    Retaining collateral free of interests  

           Division 5--Objection to purchase or retention

   137.    Persons entitled to notice may object to proposal  
   138.    Person making objection may be requested by secured party to prove interest  

           Division 6--Seizure and disposal or retention of crops and livestock

   138A.   Meaning of take and water source  
   138B.   Seizure and disposal or retention of crops  
   138C.   Seizure and disposal or retention of livestock  

   PART 4.4----RULES APPLYING AFTER ENFORCEMENT

   139.    Guide to this Part  
   140.    Distribution of proceeds received by secured party  
   141.    Secured party may take steps to reflect transfer of title  
   142.    Entitled persons may redeem collateral  
   143.    Entitled persons may reinstate security agreement  
   144.    When certain enforcement notices are not required  
            

CHAPTER 5--Personal Property Securities Register
            

   PART 5.1----GUIDE TO THIS CHAPTER

   145.    Guide to this Chapter  

   PART 5.2----ESTABLISHMENT OF THE REGISTER

   146.    Guide to this Part  
   147.    Personal Property Securities Register  
   148.    What the register contains  

   PART 5.3----REGISTRATION

   149.    Guide to this Part  
   150.    Registration--on application  
   151.    Registration--belief about security interest  
   152.    Registration--location of personal property and interested persons outside Australia  
   153.    Financing statements with respect to security interests  
   154.    Financing statements with respect to prescribed property  
   155.    Meanings of verification statement and registration event  
   156.    Verification statements--Registrar to give to secured parties  
   157.    Verification statements--secured parties to give notice to grantors  
   158.    Verification statements--publication as alternative  

   PART 5.4----WHEN A REGISTRATION IS EFFECTIVE

   159.    Guide to this Part  
   160.    Registration time--general  
   161.    Registration time--security agreements and interests  
   162.    Registration time--transfers  
   163.    Effective registration  
   164.    Defects in registration--general rule  
   165.    Defects in registration--particular defects  
   166.    Defects in registration--temporary effectiveness  
   167.    Security interest in certain property becomes unperfected  
   168.    Maintenance fees  

   PART 5.5----ACCESSING THE REGISTER TO SEARCH FOR DATA

   169.    Guide to this Part  
   170.    Search--general  
   171.    Search--criteria  
   172.    Search--by reference to details of grantor who is an individual  
   173.    Search--interference with privacy  
   174.    Search--written search results and evidence etc.  
   175.    Copies of financing statements and verification statements  
   176.    Reports by Registrar  

   PART 5.5A----CONDITIONS ON DATA ACCESS

   176A.   Guide to this Part  
   176B.   Access to registered data--conditions  
   176C.   Access to third party data  

   PART 5.6----AMENDMENT DEMANDS

           Division 1--Introduction

   177.    Guide to this Part  
   178.    How amendment demands are given  

           Division 2--Amendment demands

              Subdivision A--Administrative process

   179.    Scope of Subdivision  
   180.    Administrative process--amendment notices  
   181.    Administrative process--registration amendments  

              Subdivision B--Judicial process

   182.    Judicial process for considering amendment demand  

   PART 5.7----REMOVAL OF DATA AND CORRECTION OF REGISTRATION ERRORS

   183.    Guide to this Part  
   184.    Removal of data--general grounds  
   185.    Removal of data--registration ineffective for 7 years or more  
   186.    Incorrectly removed data--restoration  
   187.    Records of removed data  
   188.    Correction of registration errors  

   PART 5.8----FEES, ADMINISTRATIVE REVIEW AND ANNUAL REPORTS

   189.    Guide to this Part  
   190.    Registration and search fees  
   191.    Review of decisions  
   192.    Annual reports  

   PART 5.9----REGISTRAR OF PERSONAL PROPERTY SECURITIES

   193.    Guide to this Part  
   194.    Registrar--establishment of office  
   195.    Registrar--functions and powers  
   195A.   Registrar--investigations  
   196.    Registrar--acting appointments  
   197.    Registrar--delegation  
   198.    Registrar--resignation  
   199.    Registrar--termination  
   200.    Deputy Registrar--establishment of office  
   201.    Deputy Registrar--functions and powers  
   202.    Deputy Registrar--resignation  
   203.    Deputy Registrar--termination  
            

CHAPTER 6--Judicial proceedings
            

   PART 6.1----GUIDE TO THIS CHAPTER

   204.    Guide to this Chapter  

   PART 6.2----JUDICIAL PROCEEDINGS GENERALLY

           Division 1--Introduction

   205.    Guide to this Part  
   206.    Scope of this Part  

           Division 2--Conferral of jurisdiction

   207.    Jurisdiction of courts  
   208.    Cross-jurisdictional appeals  
   209.    Courts to act in aid of each other  

           Division 3--Transfers between courts

   210.    Application of this Division  
   211.    Exercise of transfer power  
   212.    Criteria for transfers between courts  
   213.    Initiating transfers between courts  
   214.    Documents and procedure  
   215.    Conduct of transferred proceedings  
   216.    Entitlement to practise as barrister or solicitor  
   217.    Limitation on appeals  

           Division 4--Registrar's role in judicial proceedings

   218.    Intervention in judicial proceedings  
   219.    Initiation of judicial proceedings  

   PART 6.3----CIVIL PENALTY PROCEEDINGS

           Division 1--Introduction

   220.    Guide to this Part  
   221.    What is a civil penalty provision?  

           Division 2--Obtaining an order for a civil penalty

   222.    Federal Court may order person to pay pecuniary penalty for contravening civil penalty provision  
   223.    Contravening a civil penalty provision is not an offence  
   224.    Persons involved in contravening civil penalty provision  
   225.    Recovery of a pecuniary penalty  

           Division 3--Civil penalty proceedings and criminal proceedings

   226.    Civil proceedings after criminal proceedings  
   227.    Criminal proceedings during civil proceedings  
   228.    Criminal proceedings after civil proceedings  
   229.    Evidence given in proceedings for penalty not admissible in criminal proceedings  

           Division 4--Enforceable undertakings relating to contraventions of civil penalty provisions

   230.    Acceptance of undertakings relating to contraventions of civil penalty provisions  
   231.    Enforcement of undertakings  
            

CHAPTER 7--Operation of laws
            

   PART 7.1----GUIDE TO THIS CHAPTER

   232.    Guide to this Chapter  

   PART 7.2----AUSTRALIAN LAWS AND THOSE OF OTHER JURISDICTIONS

   233.    Guide to this Part  
   234.    Scope of this Part  
   235.    Meaning of located  
   236.    Commonwealth laws may provide for governing law  
   237.    Express agreement  
   238.    Governing laws--goods  
   239.    Governing laws--intangible property  
   240.    Governing laws--financial property and rights evidenced by letters of credit  
   241.    Governing laws--proceeds  

   PART 7.3----CONSTITUTIONAL OPERATION

           Division 1--Introduction

   242.    Guide to this Part  

           Division 2--Constitutional basis

   243.    Constitutional basis for this Act  
   244.    Meaning of referring State  
   245.    Meaning of referred PPS matters  
   246.    Non-referring State operation--overview  
   247.    Non-referring State operation--persons  
   248.    Non-referring State operation--activities  
   249.    Non-referring State operation--interests  
   250.    Non-referring State operation--inclusion of data in register  
   251.    Personal property taken free of security interest when Act begins to operate  
   252.    Priority between constitutional and non-constitutional security interests  

           Division 3--Constitutional guarantees

   252A.   No constitutional preference to one State over another  
   252B.   No unjust acquisition of property  

   PART 7.4----RELATIONSHIP BETWEEN AUSTRALIAN LAWS

           Division 1--Introduction

   253.    Guide to this Part  

           Division 2--Concurrent operation

   254.    Concurrent operation--general rule  
   255.    Concurrent operation--regulations may resolve inconsistency  

           Division 3--When other laws prevail

   256.    When other laws prevail--certain other Commonwealth Acts  
   257.    When other laws prevail--security agreements  
   258.    When other laws prevail--personal property, security interests and matters excluded from State amendment referrals  
   259.    When other laws prevail--exclusion by referring State law or Territory law  

           Division 4--When this Act prevails

   261.    When this Act prevails--registration requirements  
   262.    When this Act prevails--assignment requirements  
   263.    When this Act prevails--formal requirements relating to agreements  
   264.    When this Act prevails--attachment and perfection of security interests  
            

CHAPTER 8--Miscellaneous
            

   PART 8.1----GUIDE TO THIS CHAPTER

   265.    Guide to this Chapter  

   PART 8.2----VESTING OF CERTAIN UNPERFECTED SECURITY INTERESTS

   266.    Guide to this Part  
   267.    Vesting of unperfected security interests in the grantor upon the grantor's winding up or bankruptcy etc.  
   267A.   Vesting in grantor of security interest that attaches after winding up etc.  
   268.    Security interests unaffected by section 267  
   269.    Certain lessors, bailors and consignors entitled to damages  

   PART 8.3----EXERCISE AND DISCHARGE OF RIGHTS, DUTIES AND OBLIGATIONS

   270.    Guide to this Part  
   271.    Entitlement to damages for breach of duties or obligations  
   272.    Liability for damages  
   273.    Application of Act not affected by secured party having title to collateral  

   PART 8.4----PROVISION OF INFORMATION BY SECURED PARTIES

   274.    Guide to this Part  
   275.    Secured party to provide certain information relating to security interest  
   276.    Obligation to disclose successor in security interest when request made  
   277.    Time for responding to a request  
   278.    Application to court for exemption or extension of time to respond to requests  
   279.    Persons may recover costs arising from request  
   280.    Application to court for response to request etc.  
   281.    Application to court in relation to costs charged  
   282.    Consequences of not complying with court order  
   283.    Estoppels against persons who respond to a request  

   PART 8.5----NOTICES AND TIMING

   284.    Guide to this Part  
   285.    Application of this Part--notices etc.  
   286.    Notices--writing  
   287.    Notices--registered secured parties  
   288.    Notices--more than one registered secured party  
   289.    Notices etc. must be given to persons registered as secured parties using identifier  
   290.    Notices--deceased persons  
   291.    Notices--Court orders  
   292.    Notices--formal defects  
   293.    Timing--applications for extension of time  
   294.    Timing--references to time in this Act  

   PART 8.6----ONUS OF PROOF AND KNOWLEDGE

   295.    Guide to this Part  
   296.    Onus of proof  
   297.    Meaning of constructive knowledge  
   298.    Actual or constructive knowledge by bodies corporate and other entities  
   299.    Actual or constructive knowledge in relation to certain property transfers  
   300.    Registration of data does not constitute constructive notice  

   PART 8.7----FORMS AND REGULATIONS

   301.    Guide to this Part  
   302.    Approved forms  
   303.    Regulations  
            

CHAPTER 9--Transitional provisions
            

   PART 9.1----GUIDE TO THIS CHAPTER

   304.    Guide to this Chapter  

   PART 9.2----KEY CONCEPTS

   305.    Guide to this Part  
   306.    Meaning of migration time and registration commencement time  
   307.    Meaning of transitional security agreement  
   308.    Meaning of transitional security interest  

   PART 9.3----INITIAL APPLICATION OF THIS ACT

   309.    Guide to this Part  
   310.    When this Act starts to apply, and in relation to which matters  
   311.    Enforceability of transitional security interests against third parties  
   312.    Declared statutory security interests  
   313.    Enforcement of security interests in intellectual property licences  
   314.    Enforcement of security interests provided for by security agreements  
   315.    Starting time for registrations  
   316.    Governing laws  
   317.    Constitutional and non-constitutional interests  
   318.    References to charges and fixed and floating charges  

   PART 9.4----TRANSITIONAL APPLICATION OF THIS ACT

           Division 1--Introduction

   319.    Guide to this Part  

           Division 2--Attachment, perfection and priority of transitional security interests

   320.    Guide to priority rules for transitional security interests  
   321.    Attachment rule  
   322.    Perfection rule  
   322A.    Priority rule--priority between transitional security interest and security interest perfected by control  
   323.    Priority rule--priority otherwise undetermined  
   324.    Priority rule--certain security interests upon insolvency or bankruptcy  

           Division 6--Migration of personal property interests

   330.    Scope of Division  
   331.    Requirement for Commonwealth officers etc. to provide data  
   332.    Meaning of migrated security interest  
   333.    Registration with respect to migrated data  
   334.    Incorrectly registered migrated data  
   335.    No requirement for notice of verification statement  

           Division 7--Preparatory registration relating to transitional security interests

   336.    Preparatory registration--transitional security interests  

           Division 8--Transitional security interests

   337.    Registration effective despite certain defects  
   337A.   Registration defective if collateral is not covered by transitional security agreement  

   PART 9.5----CHARGES AND FIXED AND FLOATING CHARGES

   338.    Guide to this Part  
   339.    References to charges and fixed and floating charges  
   340.    Meaning of circulating asset  
   341.    Meaning of control and inventory  
   341A.   Control of an ADI account  

   PART 9.6----REVIEW OF OPERATION OF ACT

   342.    Guide to this Part  
   343.    Review of operation of Act  
           SCHEDULE 1 Transitional provisions relating to amendments of this Act


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback