Personal Property Securities (PPS) Register and priorities
The PPS Register is an online register of security interests held in 
personal propertyAt a general level personal property is all forms property other than real estate. See section 10 PPS Act.
Secured parties such as financiers and other lenders can register their security interests on the PPS Register. It is also be possible to search the PPS Register for details of security interests.
The PPS Registrar has responsibility for functions under the Personal Property Securities Act 2009 (Cth) including the administration of the PPS Register. The functions of the PPS Registrar and the operation of the PPS Register are supported by the Personal Property Securities Service.
Default priority rules
Registration on the PPS Register is a form of perfection under the PPS Act. The most common form of perfection under the PPS Act will be by registration.
Perfection by registration has two main benefits for a secured party. Firstly it defines the priority status the security interest has relative to other security interests in the collateral. Secondly it ensures their security interest survives the bankruptcy or insolvency of the grantor, the person that receives assistance to acquire the collateral.
The effect of registration upon the priority of security interests is demonstrated through the default priority rules under the PPS Act. These rules provide that:
- a perfected security interest takes priority over an unperfected security interest
- priority between two or more perfected security interests is determined in favour of an earlier perfected security interest over a later one, and
- priority between two or more unperfected security interests is determined in favour of an earlier attached security interest over a later oneSection 55, PPS Act.
These rules operate on a default basis and are subject to more specific priority rules throughout the PPS Act. For example, there are specific rules that apply to purchase money security interests. For more information, visit the information sheet about purchase money security interests.
Making a registration
On receiving an application in the approved form, the PPS Registrar may enter a security interest onto the PPS RegisterSection 150, PPS Act.
The application must consist of a financing statement. The financing statementSection 153, PPS Act contains the particulars of parties to the transaction, the collateral and the security interest. For certain collateral the grantor’s details will not be entered for privacy reasonsRegulation 3.2, PPS Regulations, provides that motor vehicles, watercraft and aircraft must be described by vehicle identification number or other unique identifier if the property is not held by the grantor for business purposes. Also see section 10, PPS Act, definition of consumer property..
On the registration of the financing statement the PPS Registrar issues a verification statementSection 156, PPS Act to the secured party. The verification statement can be relied upon by the secured party to prove their registration. The secured party must give a notice of the verification statementSection 157, PPS Act to the grantor.
A person with an interest in collateral that has had a security interest registered against it may demandSection 178, PPS Act the secured party remove the registration if the collateral does not secure an amount owed to the secured party. The secured party may amend or remove the registration. If they do not do so within five business daysSection 179, PPS Act the person that gave the demand can apply in the approved formSection 180, PPS Act to the PPS Registrar and require that the registration be amended or removedSection 181, PPS Act. If the secured party disagrees with the demandSection 182, PPS Act they may seek a court order that to the effect that the demand was not valid.
Searching the PPS Register
A person may search the PPS Register for details of a registration or security interests registered against a particular grantor.
If the grantor being searched against is an individual rather than a company the search must be for a purpose authorisedSection 172, PPS Act by the PPS Act. These purposes have been drafted to ensure privacy requirements are complied with. Breach of these authorised search purposes is a civilSection 172(3), PPS Act and criminal offenceSee part 7.4, Criminal Code Act.
The search certificate will contain details of the parties and the class of collateral the security interest has been registered against.
Fees
The fees for registration and search of the PPS Register are determined by the Attorney-GeneralSection 190, PPS Act for Australia. Costs are determined on a cost recovery basis. The Australian Government will make no profit from the PPS Register.