30 January 2019 marks the seventh anniversary of when the Personal Property Securities Act 2009 (Cth) started to apply and, as registrations against serial numbers and/or consumer property can only have a duration of 7 years, that means those types of registrations (if made in 2012) will expire automatically this year unless they are renewed.
If you have made registrations on the PPS register that are for a period of 7 years (or less):
- you should start monitoring when those registrations expire. You can request a report (for free) from the PPS register that identifies all registrations in favour of your secured party group that are due to expire; and
- when doing so, you may wish to take the opportunity to check whether the details used in those registrations continue to be correct.
If you do not renew your registration before it expires and have to make a new registration:
- you may lose your priority position; and/or
- your security interest could vest in the grantor if the grantor goes into administration or liquidation within 6 months of that new registration.
To avoid these consequences, you should renew your registrations in advance of their expiry if they continue to perfect security interests in your favour.