When you register a security interest on the PPSR, the ‘not transitional’ is selected by default. The ‘transitional’ option relates to the transitional period of the PPSR which has now ended and amending migrated registrations.
What is a transitional security interest?
A transitional security interest (TSI) is an interest in personal property that secures payment or performance of an obligation which existed prior to 30 January 2012.
TSIs also include security interests that didn’t exist at 30 January 2012, but were created under a security agreement that existed prior to 30 January 2012 and continued to exist after that time.
Registering your TSI on the PPSR before 30 January 2014 allowed you to take advantage of ‘temporary perfection’ and preserve the priority status of your security interest.
Australian registrations that existed on state and other registers prior to this date were migrated to the PPSR. These registrations became TSIs on the PPSR.
Temporary perfection of a TSI no longer applies
You can still register your TSI. However, you no longer gain the benefit of temporary perfection.
What this means is that the ‘perfected’ status of the security interest begins from the time of registration on the PPSR, instead of the earlier date allowable under the transitional provisions if registered before the end of 31 January 2014.
There is no longer any difference between the effect of a transitional and non-transitional registration and the ‘no fee’ status of transitional registrations no longer applies.