Personal Property Securities Act 2009
No. 130, 2009
Compilation No. 22
Compilation date: 14 October 2024
Includes amendments: Act No. 39, 2024
About this compilation
This compilation
This is a compilation of the Personal Property Securities Act 2009 that shows the text of the law as amended and in force on 14 October 2024 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
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…
Overview
The Personal Property Securities Act 2009 was enacted by the Commonwealth Parliament to address the need for a uniform national regime for the creation, perfection, and enforcement of security interests in personal property. This Act sought to streamline and clarify the legal framework governing such interests, thereby enhancing the efficiency of credit transactions and protecting the interests of creditors and debtors. It was designed to provide a transparent and accessible system for registering and searching security interests, thus reducing the complexity and cost associated with verifying and enforcing these interests. The Act also aimed to establish clear priority rules for competing security interests and to offer mechanisms for resolving disputes. By creating a centralised online register, the Act intended to improve market confidence and facilitate better access to credit for businesses and individuals.
Scope and Application
The Personal Property Securities Act 2009 is a Commonwealth law that governs security interests in personal property, other than real property, across Australia. The Act applies to security interests in personal property if the location of the property is in Australia or if the grantor of the security interest is an Australian entity. This includes goods, financial property, intangible property, and intellectual property, subject to certain exclusions. The Act binds the Crown and applies to Norfolk Island as well as other external territories if prescribed by regulations. It does not apply to certain statutory interests, water rights, and interests related to superannuation funds and annuities. The Act provides for the registration of security interests in the Personal Property Securities Register, and regulates the enforcement of such interests. It also establishes the office of the Registrar of Personal Property Securities, who is responsible for maintaining the register and its data. The Act's provisions can be contracted out of, except in certain circumstances, and it allows for the transfer and priority of security interests under specified conditions. Subordinate instruments can extend or restrict the application of the Act, but such extensions or restrictions do not alter the text of the Act itself.
Key Provisions
- The Personal Property Securities Act 2009 (the "Act") governs security interests in personal property, providing a comprehensive framework for the creation, perfection, and enforcement of these interests. Key provisions of the Act include the establishment of the Personal Property Securities Register (PPS Register) for public notice of security interests (section 147), and the rules governing the attachment, perfection, and priority of security interests (sections 18, 19, 20, 21). The Act mandates that a security interest is enforceable against the grantor when it attaches to the collateral, and against third parties when it is perfected through registration or possession/control of the collateral (sections 18, 20). Parties to a security agreement must exercise their rights and duties honestly and in a commercially reasonable manner (section 111). Failure to comply with registration requirements can result in a security interest becoming unperfected (section 164), and unauthorised searches of the PPS Register are prohibited (section 173). Breaches of these requirements can lead to civil penalties (Part 6.3). Additionally, the Act imposes obligations on secured parties to provide certain information upon request and allows for damages for non-compliance with these obligations (sections 274-278). Transitional provisions and rules for the initial application of the Act are detailed in Chapter 9, ensuring a smooth transition from previous regimes to the new legislative framework.
- Area of Law
- Commercial Law
- Corporate Law & Governance
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Regulatory Standards
- Licensing & Registration
- Enforcement Powers
- Reporting & Disclosure Obligations
- Prohibited Conduct
