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Commercial consignment of craftwork by individual artist to gallery (sole trader)

Case study
This case study does not cover every step of the registration process, but instead highlights some of the key questions.
Comic strip about jewellery reseller

Brett is a jewellery designer who has sold his work for years through a gallery run by Wendy.

Sole-trader Wendy exhibits and sells other craftwork from the region. In Brett’s case, all his work is delivered to the gallery based on terms that he and Wendy agreed in writing some years ago. The terms describe the work as jewellery, and state that it will be sold on behalf of the artist and after deducting a 10% commission, Wendy will pay over to the artist the amounts paid by her customers.

Brett has been advised by a fellow artist that he should now register the arrangement that he has with Wendy on the PPSR. The fellow artist lost some of his work last year when the owner of the gallery he was consigning to went bust and the fellow artist had not registered. He now makes sure his work is protected from a similar fate. Brett fills in the online PPSR financing statement as follows.

Create Secured Party Group: a secured party group is needed to complete a registration


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Secured party details — Brett is the secured party in this case study. Use the name in the same form as it is on his driver's licence — Brett Dylan Blackley

If the secured party is an individual, the name should be exactly the same as the person's driver's licence.

If they do not have a licence, the regulations to the law do prescribe other documents that can be used instead.


Display input fields for Secured party group contact details showing Recipient name, Email, Mailing address, Suburb, State, Postcode and Country

Address for service — you can use Brett's home address and his personal email address

Use the address that you want any correspondence to be sent to.

Create a registration:


What is the collateral type? Commercial.
Collateral 1. Select one collateral class from the categories below. Tangible property: Other goods.
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Collateral type and classcommercial property and other goods will be selected for this case study


How the grantor (Wendy) uses the goods defines whether or not it is consumer or commercial property. Since Wendy is selling the work in her gallery as her business, it is clearly commercial.


It is 'other goods' as it does not come under any other specified collateral classes for the PPSR.


Brett might wish to use the optional 'free text' box to give a collateral description, such as 'artwork consigned by Brett', to stop requests for amendment of the PPSR financing statement. Otherwise it looks like he is claiming security over all of Wendy's 'other goods' and she may be taking artwork, on consignment or otherwise, from other artists.


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Registration period — 7 years

As commercial non-serial-numbered property, the jewellery could be registered for up to 25 years, or indefinitely. Brett has chosen a relatively short period. Perhaps he thinks that he will not be producing jewellery in a few years time or not using Wendy's gallery.


Purchase money security interest (PMSI)? tick the box

This commercial consignment arrangement, with both parties frequently dealing in this way, is within the definition of a PMSI which offers super-priority. For more information see Purchase Money Security Interest in section 4, page 36 of the Business Guide.


Inventory? tick the box

Wendy is selling the jewellery to retail customers, so it is part of her inventory.


Proceeds? for this case study, the proceeds to be claimed box is ticked and the text all present and after acquired property then displays in the text box

Brett ensures his security interest continues to be effective over the proceeds of the sale after the jewellery is sold.


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Grantor details — as she is a sole trader, Wendy Patricia Slyznowicz is the grantor (customer) in this case study. Her date of birth is also needed for this question. Both need to match the details on Wendy's driver's licence

If Wendy did not drive, her name on an identification card or her passport could be used. For an individual grantor, the date of birth is also required, which should be on the document used for the name. This information can be obtained from the proposed grantor.