Existing security interests can be divided into two categories:
- security interests that are currently registered on a ‘migrating register’; and
- security interests that are not currently registrable, are not registered or are not on a ‘migrating register’ (e.g. retention of title arrangements).
Most security interests that have already been registered (e.g. charges registered with ASIC) will migrate to the Personal Property Securities Register (PPSR). However, this does not apply to all registers. You can check here to see which registers will be migrated. No further action will be required to perfect the security interest. Consideration will however need to be given to the ‘end time’ of the security interest. We are able to advise further in this regard.
If your security interest should have been registered on a migrating register by migration cut off time but was not, it must be registered on the PPSR as soon as possible on or after 30 January 2012.
Any unregistered security interest of this type will not be a transitional security interest. Its priority will be dealt with according to the normal rules of priority of security interests under the PPSA.
If the security interest is not currently registrable on a migrating register (that is, it is registrable only on a non-migrating register or is not currently required to be registered on any register) the PPSA, gives this type of security interest temporary perfection for a period, subject to the next paragraph, of 24 months from 30 January 2012 (30 January 2014). To continue protection beyond that 24 month period you will be required to register that security interest on the PPSR before the end of that 24 month period.
However, you should be aware that you will stop temporary perfection of non migrated transitional security interests if you do any of the things listed in section 322(2) of the PPSA, for example, registering on the PPSR.
The migration cut off time for most registers was on Friday 27 January 2012 although it may have been earlier for some registers.