Personal Properties Securities Register in a Nutshell
Ever since the Australian Personal Property Securities Act 2009 was passed by the Council of Australian Governments, transactions involving personal properties became easier and more secure. The PPS Act made it easier to access financing, reduce the risk in financial transactions involving personal properties, and increased consumer protection from fraudulent sales and transactions. By using services provided by some companies such as InfoTrack, individuals or companies may check on registered info of personal properties such as motor vehicles and other novel goods, thus eliminating the chance of falling for fraudulent transactions.
Before the PPS was passed, despite the efforts of the Australian Financial Security Authority, or AFSA, to secure financial transactions there is a big flaw in the system. Transaction management was fragmented resulting to a slow and tedious process and inefficient data flow. Adding to that, there are 70 separate Acts governing personal properties, common law rules and principles that operates in parallel to each other, and 40 different registers of secured collaterals. This makes the task challenging, even for legal professionals, thus hindering the growth of the Australian economy.
Realizing that the system is not only complex but also expensive to operate, the Australian Council decided that the system is in need of standardization and centralization. Through their efforts, they came up with a system of reform that results to the certainty, consistency, and the reduction of the complexity and cost of managing transactions involving personal properties, which Australians referred to as the 4Cs.
How does Personal Properties Securities Register work?
Personal Properties Securities Register works in two ways, registration and searching, which can be used by both debtors and creditors. Registration involves the act in which creditors may register security interest such as collaterals so that they may recover their debt even if the debtor fails to pay. This is important for creditors as if they do not register said securities with a register, they would be the least of the priorities in asset distribution in case that the debtor is bankrupt or liquidates his assets.
Searching involves getting information from a personal properties securities register to assess the level of risk debtors posed to creditors before starting a transaction with them. This can involve searching information regarding debtor’s existing security interest over their personal properties being offered as collateral, their existing debts, if the collateral the debtor offers have already been used a couple of times, or whether the collateral offered is illegally obtained or if the debtor does not have sufficient rights to offer it for collateral. This is done through PPSR searcher such as InfoTrack.
How will I check a collateral’s registration information?
InfoTrack offers multiple services involving searching for personal properties registration. They offer services such as organizational grantor search, individual grantor search, serial number search of motorized vehicles, watercrafts, aircrafts, and intellectual properties, registration search, and ordinal search. They also offer different types of company searches involving personal property registration.