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Personal Property Securities Act 2009
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Department of the Treasury
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C2015C00511 C12
01 October 2015
-
09 December 2015
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Chapter 1—Introduction
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Part 1.1—Preliminary
1 Short title
2 Commencement
2A Schedule 1
3 Guide to this Act
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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
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Part 1.3—Definitions
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Division 1—Introduction
9 Guide to this Part
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Division 2—The Dictionary
10 The Dictionary
11 Application of the Acts Interpretation Act 1901
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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
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Chapter 2—General rules relating to security interests
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Part 2.1—Guide to this Chapter
16 Guide to this Chapter
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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
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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
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Part 2.4—Attachment and perfection: specific rules
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Division 1—Introduction
30 Guide to this Part
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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
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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
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Division 4—Relocation of collateral or grantor to Australia etc.
39 Relocation—main rule
40 Relocation—intangible property and financial property
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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
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Part 2.6—Priority between security interests
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Division 1—Introduction
54 Guide to this Part
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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
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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
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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
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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
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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
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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
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Chapter 3—Specific rules for certain security interests
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Part 3.1—Guide to this Chapter
82 Guide to this Chapter
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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
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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
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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
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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
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Chapter 4—Enforcement of security interests
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Part 4.1—Guide to this Chapter
107 Guide to this Chapter
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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
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Part 4.3—Seizure and disposal or retention of collateral
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Division 1—Introduction
122 Guide to this Part
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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
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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
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Division 4—Retaining collateral
134 Proposal of secured party to retain collateral
135 Notice of retention of collateral
136 Retaining collateral free of interests
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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
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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
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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
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Chapter 5—Personal Property Securities Register
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Part 5.1—Guide to this Chapter
145 Guide to this Chapter
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Part 5.2—Establishment of the register
146 Guide to this Part
147 Personal Property Securities Register
148 What the register contains
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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
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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
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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
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Part 5.5A—Conditions on data access
176A Guide to this Part
176B Access to registered data—conditions
176C Access to third party data
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Part 5.6—Amendment demands
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Division 1—Introduction
177 Guide to this Part
178 How amendment demands are given
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Division 2—Amendment demands: administrative and judicial process
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Subdivision A—Administrative process
179 Scope of Subdivision
180 Administrative process—amendment notices
181 Administrative process—registration amendments
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Subdivision B—Judicial process
182 Judicial process for considering amendment demand
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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
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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
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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
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Chapter 6—Judicial proceedings
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Part 6.1—Guide to this Chapter
204 Guide to this Chapter
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Part 6.2—Judicial proceedings generally
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Division 1—Introduction
205 Guide to this Part
206 Scope of this Part
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Division 2—Conferral of jurisdiction
207 Jurisdiction of courts
208 Cross-jurisdictional appeals
209 Courts to act in aid of each other
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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
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Division 4—Registrar’s role in judicial proceedings
218 Intervention in judicial proceedings
219 Initiation of judicial proceedings
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Part 6.3—Civil penalty proceedings
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Division 1—Introduction
220 Guide to this Part
221 What is a civil penalty provision?
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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
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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
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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
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Chapter 7—Operation of laws
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Part 7.1—Guide to this Chapter
232 Guide to this Chapter
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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
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Part 7.3—Constitutional operation
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Division 1—Introduction
242 Guide to this Part
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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
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Division 3—Constitutional guarantees
252A No constitutional preference to one State over another
252B No unjust acquisition of property
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Part 7.4—Relationship between Australian laws
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Division 1—Introduction
253 Guide to this Part
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Division 2—Concurrent operation
254 Concurrent operation—general rule
255 Concurrent operation—regulations may resolve inconsistency
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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
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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
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Chapter 8—Miscellaneous
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Part 8.1—Guide to this Chapter
265 Guide to this Chapter
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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
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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
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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
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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
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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
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Part 8.7—Forms and regulations
301 Guide to this Part
302 Approved forms
303 Regulations
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Chapter 9—Transitional provisions
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Part 9.1—Guide to this Chapter
304 Guide to this Chapter
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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
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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
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Part 9.4—Transitional application of this Act
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Division 1—Introduction
319 Guide to this Part
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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
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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
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Division 7—Preparatory registration relating to transitional security interests
336 Preparatory registration—transitional security interests
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Division 8—Transitional security interests: registration defects
337 Registration effective despite certain defects
337A Registration defective if collateral is not covered by transitional security agreement
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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
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Part 9.6—Review of operation of Act
342 Guide to this Part
343 Review of operation of Act
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Schedule 1—Transitional provisions relating to amendments of this Act
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Part 1—Transitional provisions relating to the Personal Property Securities Amendment (Deregulatory Measures) Act 2015
1 Definitions
2 Application of amendments relating to serial numbered goods
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Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
