Draper and Registrar of Personal Property Securities

This matter concerned an application by Mr Draper to review a decision by a delegate of the Registrar of Personal Property Securities. The delegate had refused to register a financing change statement that sought to amend a registration on the Personal Property Securities Register (PPSR) by removing it. Mr Draper contended that the collateral, a motor vehicle, no longer secured any obligation owed by him and his wife to the secured party, ANZ (trading as Esanda).

The primary legal issue before the court was whether the Registrar had reasonable grounds to suspect that the amendment sought by Mr Draper was not authorised under section 178 of the relevant Act, as required by section 181(1) of the Act. This involved determining whether the collateral continued to secure a debt owed by Mr and Mrs Draper to ANZ.

The court found that the evidence supported the delegate's decision. A loan contract dated 18 January 2012, appearing to be signed by Mr and Mrs Draper, facilitated the purchase of a motor vehicle. The contract stipulated that a mortgage was to be given over the vehicle unless explicitly indicated otherwise, which it was not. Consequently, ANZ registered a mortgage over the vehicle, which was later migrated to the PPSR. Despite Mr Draper's assertions of fraud regarding fees and the validity of signatures, ANZ had credited $1,050 to the loan to resolve the complaint, and a subsequent attempt by Mr Draper to pay out the contract by cheque was dishonoured. Given these circumstances, the court concluded that there were reasonable grounds to suspect that the amendment sought by Mr Draper was not authorised because the collateral still secured an outstanding obligation to ANZ.

Accordingly, the court affirmed the decision under review.