When registering a security interest on the PPSR, you may need to identify the grantor. The grantor is the individual or organisation who owns or has an interest in the personal property to which the security interest is attached. This includes a person who receives goods under a commercial consignment, a lessee under a PPS lease, and a transferor of an account or chattel paper.
A registration may also have more than one grantor. Grantor details do not need to be registered if the security interest relates to collateral that is serial numbered consumer property.
PPSR rules for grantor identification
PPS Regulations prescribe the way you must describe grantors in your registration. Make sure you use the correct identifying information. If your registration does not meet the rules, you risk your registration not being effective.
Individual grantor details
- includes a sole trader who has an ABN for the enterprise for which the security interest is granted or held; and
- does not include an individual who is a partner in a partnership or a trustee of a trust if the partnership or trust has an ABN for the enterprise for which the security interest is granted or held.
The individual’s surname, given names and date of birth must be recorded accurately.
Identifying information should be sourced from the documents in this order of priority:
- current data known by the secured party because of the operation of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) (principally financial institutions)
- the current driver’s licence issued by an Australian state or territory
- proof of age card issued by an Australian state or territory
- Australian passport
- Australian visa
- passport from country grantor usually resides, or
- details on birth certificate.
Make sure all details are correct
Check the date the identification was issued. For example, the grantor might have a new driver’s licence and their previous licence listed their maiden name. Ask for the previous identification.
Check the type of identification. For example if the person recently obtained a driver’s licence for the first time, the form of identification that was previously used might have been a passport. The person’s name on the passport might differ from that on their driver’s licence. Ask for the previously highest ranking form of identification.
Organisation grantor details
Different rules apply depending on whether the grantor is a body corporate, a partnership, trustee of a trust, or a body politic. Fields on the PPSR change according to the identifier selected.
Body corporate identifiers
If the body corporate is the responsible entity of a registered scheme that has an ARSN, use the ARSN. ARSNs are issued to Managed Investment Schemes. If that does not apply and the body corporate has an ACN, use the ACN.
If the body corporate has no ACN but has an ARBN, use the ARBN. ARBNs are issued to registerable Australian bodies and foreign companies.
If none of these options apply, use the name of the body (sourced from the body corporate’s constitution or equivalent document). To do this you will need to select the entity type “other” and then the organisation name.
If the grantor is a partner in a partnership carrying on an enterprise to which an ABN has been allocated, the relevant identifier is the ABN. To do this you will need to select the entity type “partnership” and then the ABN .
If the partnership has not been allocated an ABN then the registration should be made against the details of the partners, as individuals.
If an individual partner grants a security interest over the partner’s net interest in a partnership then the individual identifiers apply.
If the trustee has an ARSN register against the ARSN.
If the trustee is a body corporate without an ARSN and the trust has an ABN register against the ABN. To do this you will need to select the entity type “trust” and then the ABN.
If the trustee is a body corporate without an ARSN and the trust does not have an ABN register against the body corporate’s ACN
Body politic identifiers
If the body politic is carrying on an enterprise to which an ABN has been allocated, the relevant identifier is the ABN. To do this you will need to select the entity type “body politic” and then the ABN.
If the body politic or has an interest in collateral, other than in the course of, or for, an enterprise that has been allocated an ABN then register against the name of body politic, in accordance with the constitution of body politic. To do this you will need to select the entity type “other” and then the organisation name.
Verify organisation grantor details
Make sure you verify an ARSN, ACN or ARBN on the grantor details screen.
The screen will return details of the organisation attached to the identifier, which you can then check and confirm.