In May 2011 new laws will apply uniformly to the granting of security over personal property. Personal property is any form of property other than land and buildings. Personal property includes motor vehicles and machinery (tangible property) and rights under contract and intellectual property (intangible property). A PPS is an interest in personal property that secures a payment or performance of an obligation. A loan taken out by a business that is secured over the business’ trading stock is one example of a personal property security. The PPS Register will be a single, national online register. Secured parties and potential secured parties will be able to use it to search for, and register their security interest in personal property. Other creditors will be able to search and then make an informed decision before granting credit. New Zealand has used a registration system for many years. We followed them into GST, but still made many mistakes. Will we learn this time?
23rd-January-2011 | 