The Personal Property Securities Act 2009 (Cth) (PPSA) came into effect in Australia in 2012 and has reformed lending and security of personal property. The PPSA legislates the enforcement and priority of security interests over personal property.
Under the Act, a security interested must be attached to collateral in order for it to be enforceable against the grantor. The agreement must generally be in writing and signed by the grantor to be enforceable against others.
Perfection is a concept unique to the PPS Act. It is a form of protection for a secured party stronger than attachment. Perfected security interests will have priority over other security interests in the event of insolvency or bankruptcy of the grantor.
Read more in our article: “What is a PMSI – new security for PPSA”.