If you provide plant, equipment, machinery or motor vehicles to contractors in the construction industry, you probably do that through a hire purchase arrangement or lease.
Under hire purchase or lease, you hand over possession to the contractor but keep ownership (retention of title) and have the right to take the equipment back if the contractor stops paying.
Where a lease is for a fixed term of more than 12 months if it was agreed before 20 May 2017, and more than 2 years if it was agreed on or after 20 May 2017 (when the PPS Law was changed), or where you have retention of title terms, then PPSR registration can provide protection for your claim to retake possession if the contractor stops paying.
Leases and retention of title arrangements fall within the definition of purchase money security interests (PMSI) for registration and should be registered with that status.
PMSI status will give you priority over other registered interests in that property, such as that of the contractor’s bank, even if the bank registered a security interest over ‘all present and after acquired property’ before your registration.
Motor vehicles should be registered against their serial number, not just against the name of the grantor (the contractor leasing or purchasing the motor vehicle).
This will protect you in case the motor vehicle is sold on by the contractor.
The serial number will usually be the Vehicle Identification Number (VIN) which is usually located on a small metal place on the body of the vehicle.
Some portable construction equipment might not meet the definition of motor vehicle under the current law.
As a general guide, if the equipment has a uniquely identifying serial number and is built to be propelled on land by a built-in motor that is more than 200W power and it is capable of going over 10 kph, it will meet the definition – see motor vehicle.