1. Personal Properties & Security Register (PPSR)
September 2012

2. Agenda
 PPSA – What is it all about ?
 What is a PPS Lease ?
 Working Examples
 Master Agreements
 PPSA Checklist
 PPSA – How to Register Security Interest

3. PPSA – What is it all about?
 Comprehensive new Commonwealth law regulating security interests in
personal property. The new law commenced on 30/1/12 and replaces 70+ Acts.
 “Personal property” covers basically everything except land and certain statutory
licences.
 Clear objective of PPSA is to encourage owners of hired equipment to
make their interest public by registration on the new PPS Register.
If choose not to, then face the possible loss of their equipment.
 New reality - ownership of equipment is by itself no guarantee
that they will be able to recover it in an insolvency of the customer.

4. What is a PPS lease?
 A lease or bailment of goods:
 For a term of more than 90 days (if serial numbered goods); OR
 For an indefinite term even if either party can terminate in less
than a year.
“Serial Number” goods are:
– motor vehicles (inc vehicles that travel > 10 km/hour OR have total motor
power of more than 200W. Trailers and attachments can also be caught).
– watercraft,
– aircraft and aircraft engines.

5. Working Example
A hire for an indefinite period is a PPS lease from inception.
Here is an example of a PPS lease:
– HireCo hires a crane to CompanyA. The hire agreement
describes the term as „TBA‟ and is therefore for an indefinite
term. This is a PPS lease. The same conclusion applies if
the hire is for a fixed term of more than 90 days.

6. Working Example
 Hires that exceed the time threshold become PPS leases even if
they weren’t to begin with.
Even if the hire has a fixed term shorter than the applicable PPSA time threshold, it can
turn into a PPS lease when the time threshold is exceeded. It is the actual period of the
hire that matters.
 HireCo hires a crane to CompanyA under an agreement that states
the hire is for a fixed term of 89 days, but the hire actually
continues for 91 days with HireCo‟s agreement. The hire becomes
a PPS lease security interest when it actually exceeds 90 days.

7. Master Agreements
Help deal with the PPSA and to clear up the issue of indefinite hire
and multiple hires to one customer.
Recommended way of documenting hires for PPSA purposes
where the hirer is a repeat customer.
Sub-hire is problematic under PPSA -sub-hirer must also register
interest
You would need to perfect (register) any security interest you may have in respect of the
sub-hire. Otherwise if we consent to you sub-hiring our equipment we risk losing title to
that equipment if you do not perfect the security interest by registering on the PPS
Register and your sub-hire customer wrongfully sells it or it becomes insolvent.

8. PPSA Checklist
1. Have I assessed the risk involved in hiring to this customer?
2. How long is the hire going to last for?
3. Having assessed the risk - do I need to register a security
interest on PPSR?
4. Using a Master Agreement – Register interest on the PPSR
5. Have I pointed out to the customer the Terms & Conditions of
sub-hire?

9. How to Register Security Interest
Visit
www.ppsr.gov.au.
You will need to have
established an
account and a
secured party group.

10. How to Register Security Interest
7 “Clicks” to
register your
security
Interest.
www.ppsr.gov.au

11. About Finlease
 The equipment finance experts
 Offices Australia-wide
 Pre-approved funding limits arranged
 Property and cash flow funding
 Complete debt restructuring available
 Established in 1989
 Client base >4000 (SME, Large Corporate & Government)
 A breath of fresh air compare to the banks

12. Finlease, a breath of
fresh air compared
to the banks.
Finlease Pty Ltd
1300 346 532
finlease@finlease.com.au
www.finlease.com.au