Go to top of page

Commercial lease of office equipment

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 printers

Printernational Pty Ltd supplies heavy duty photocopying and printing equipment to the printing sector. Page and Co is a partnership offering commercial office copying and printing services. It leases a multifunction industrial printer from Printernational for a period of two years.

Printernational emails Page and Co asking them to agree to the standard terms and conditions for the lease. The email also describes the model and number of the printer. Page and Co sends an email response with an electronic signature of the Chief Executive, agreeing to the terms. Before the printer is delivered to Page and Co’s premises, Printernational registers a financing statement on the PPSR.

Printernational is able to register a purchase money security interest—PMSI—as the lease is for more than 12 months. This is their first dealing with Page and Co. Two weeks after delivery of the printer, Printernational leases an industrial laminator to Page and Co for two years on the same terms and conditions.


Note: the registration covers the laminator supplied two weeks later to the same customer, on the same terms, as it is within the collateral class commercial property: other goods, and the free text description. Printernational does not need to register again.

One year later Dombank, which has a previously registered security interest over all the assets of Page and Co, appoints receivers to Page and Co to enforce its security interest. Despite this, Printernational is able to repossess both the printer and the laminator, because their one registration protects their interests under both leases and (as PMSIs) they have priority ahead of Dombank in relation to the equipment.

For more information about a PMSI, see section 4, page 36 of the Business Guide.

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


Secured party details, descriptions as follow.

Secured party details - for this case study you will need to use Printernational Pty Ltd’s ACN number

The secured party identifier is the ACN as it is an incorporated company. For more information, see How do I set up as a secured party?


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

Address for service

The address is where documents may be served and enquiries made. For more information about, see What is address for service?

Create a registration:


What is the collateral type? Commercial.

Collateral type - select commercial

As the equipment is used to further a business it is commercial property.


Collateral 1, Other goods.

Collateral class - select other goods and use the free text field to describe the goods

The printer, for business use, is commercial property. It is ‘other goods’ because it does not come under the other specified collateral classes in the regulations.


Collateral step 2 of 6. Registration kind. Security Interest
Office equipment (including printers and laminators) leased from Printernational.

Collateral step 2 - use the free text field to describe the goods

Using the free text box in the PPSR financing statement to add more detail about the registered goods is optional. Printernational could state that the collateral is ‘office equipment (including printers and laminators) leased from Printernational’ because without clarification it could suggest they are claiming security over all Page and Co’s ‘other goods’, which either Page and Co or other lenders may challenge. However, by using the general description ‘office equipment’ in the free text box, the registration can also cover future leases of other types of office equipment from Printernational to Page and Co (for example, scanners, shredders, and binding machines), and using the words ‘(including printers and laminators)’ ensures leases of these particular types of equipment are covered.


Select a duration for this registration, Less than 25 years.

Registration period - 10 years

As the printer is commercial property, the registration period can be a fixed period of up to 25 years or indefinite. In this case, Printernational would have chosen to pay for a longer registration than the two-year lease period because it wants to use this registration to also cover future supplies of goods to Page and Co.


Description as per text in heading f, g and h.


Purchase money security interest (PMSI)? tick the box

The lease is for more than one year and so is a PPS lease, which is a super-priority purchase money security interest (PMSI). A lease for more than one year is within the definition of a PMSI. For more information see Purchase Money Security Interest.


Inventory? leave box blank

To help ensure a valid registration, you must state, in the case of commercial property, whether or not it may form part of the inventory of the grantor (i.e. raw materials, or products or stock which are on-sold, used up or processed in the course of the business; not equipment the grantor uses to carry out its business).


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

If Page and Co dispose of the printer—which they would not be entitled to do without Printernational's permission—checking this box enables Printernational to claim the proceeds, whatever their form. For more information see proceeds.


Grantor: Organisation. Does the organisation have an ARSN?: No. Does the organisastion have an ARBN?: No. Select an entity type: Partnership. ABN: xx xxx xxx xxx. Organisation name: Page and Co (verified by the Australian Business Register).

Grantor details — because Page and Co is a partnership, Printernational will use their ABN when it fills in details about the grantor

As Page and Co is a partnership, the ABN must be used.