If you provide plant and equipment to mining contractors, or provide other supplies to the mining industry, you probably do that through a credit account, hire purchase or lease arrangement.
Under any of those arrangements, the customer takes possession and you keep ownership (including under a retention of title agreement), which gives you some rights to take back possession if the customer stops paying.
If a lease of plant or equipment is for a fixed term of more than 12 months if it was entered into 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 your customer stops paying.
Credit accounts, leases and retention of title arrangements can all fall within the definition of purchase money security interests (PMSI) for registration and, if so, should be registered with that status whenever possible.
PMSIs apply in situations where the credit extended, money lent or lease repayments due, were given for the purpose of acquiring the plant or equipment that was acquired, and the same plant or equipment is used by the seller to secure repayment.
The plant or equipment is referred to as ‘collateral’.
PMSI status can give you priority over other registered interests in that collateral, such as that of the customer’s bank, even if the bank registers 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 customer leasing or purchasing the motor vehicle from you).
This will protect you in case the motor vehicle is sold-on by your customer.
The serial number will usually be the vehicle identification number (VIN) which is usually located on a small metal plate on the body of the vehicle.
Some portable mining plant or equipment might not meet the definition of motor vehicle under the current law.
As a general guide, if it 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.