Is the registration transitional?
The 'not transitional' option will already be selected. It is extremely uncommon to need to select the transitional option. You may only need to select 'transitional' box if your security interest existed before the PPSR started on 30 January 2012. If you entered into your security agreement before this date, then see the transitional registrations page for more information.
NOTE: It is very important to get this right as selecting that a registration is transitional when it is not will make the registration defective.
Depending on what collateral class and type you select, you may need to provide some additional details. These will be in the form of tick boxes. If you check a box, you are answering ‘yes’.
Purchase money security interest applies
This is the most commonly selected box from the 'additional details' section. Selecting this box indicates that the security interest you are registering is a 'purchase money security interest' (PMSI).
NOTE: It is very important to get the answer to this question right as there can be serious consequences for getting it wrong. For example, if you check the box saying your registration is a PMSI and it is not, your registration will be ineffective.
You can't change this selection at a later date.
To help decide if your security interest is a PMSI see Do you have a Purchase Money Security Interest?
Selecting this box indicates that the collateral you have an interest in includes inventory. Inventory is the goods you’ve got in your business that are being made ready for sale. It could be your floor stock or raw materials that you’re going to use to make finished goods.
If your collateral is inventory, it will be classed as a 'circulating asset'. This may be important when it comes to enforcing your security interest and for the purposes of the Corporations Act 2010 (Cth).
Current assets are subject to control
Whether or not assets are subject to control depends upon various things such as whether:
- the property is in your possession,
- the grantor has acquired property that will not be removed without your permission and
- you manage funds deposited with you in an account.
This may be important when it comes to enforcing your security interest and for the purposes of the Corporations Act 2010 (Cth).
This registration is subordinate to another registration
Checking this box will indicate that your registration ranks lower than another registration. Usually, this option is ticked by amending the registration at a later date because you have agreed to allow another registration to rank ahead of yours even though yours would normally have priority. You can change it after you register at any point.
What if someone sells or disposes of the property you are making your registration over? Will you get anything back if you need to enforce your security interest? This is where proceeds comes in. Your security interest will usually extend to any proceeds that come about from the collateral being disposed of. This includes things like:
- money made from its sale
- insurance payouts
- compensation payments on the property
- any indirect dealing with the property.
For example, if you have a security interest in a car that is sold, the money you get from the sale can be proceeds. If the car is destroyed, an insurance payout can be proceeds too.
You will see that the ‘Proceeds to be claimed’ box is checked by default and contains the text 'All present and after acquired property'. This means all of the current and future proceeds.
Giving of notice identifier (GONI)
This field lets you enter a reference for your registration (such as a customer reference number). It is entirely up to you as to what you want to include in this field. It is optional for you to complete this unless the administrator of your PPSR account has made it mandatory.
Anyone who sends you correspondence about your registration must include it.
Earlier registration number
This optional field allows you to enter the PPSR registration number of an earlier registration that your new registration relates to. You can only use this to enter a current PPSR registration, not a discharged, expired or removed registration.