This is a list of the most important terms that you might come across in relation to the PPSR.

For a full glossary can be found on the PPSR website.

Amendment demand

A demand in writing, from a person with an interest in the collateral, requesting the secured party to amend the collateral registration. This is sometimes referred to as a change demand.

collateral

Personal property that is the subject of a security interest. By way of example, the motor vehicle that is provided as security for the loan given by a bank to finance its purchase.

collateral class

The following classes of collateral are prescribed in the PPS Regulations:

  • agriculture
  • aircraft
  • all present and after-acquired property
  • all present and after-acquired property, except
  • financial property
  • intangible property
  • motor vehicles
  • other goods, and
  • watercraft.

Each registration must only relate to a single collateral class. 

collateral description

The description of the collateral being registered on the PPS Register.

collateral registration

A registration of a financing statement on the PPS Register. In addition to details about the collateral, the registration also includes:

  • details about the grantor (where relevant), or secured party
  • details about the address for service (address to which correspondence relating to the registration must be sent)
  • giving of notice identifier (see 'giving of notice identifier'), and
  • details about the security interest (for example, whether it is a purchase money security interest or whether it is subordinate to another interest).

collateral registration identifier

A unique identification number allocated by the system to a collateral registration at the time of registration.

commercial property

Personal property that is held in the course or furtherance, to any degree, of carrying on an enterprise. It does not include consumer property – see 'consumer property'.

See definition of 'commercial property' in section 10 of the PPS Act.

consumer property

Any personal property held by an individual, other than personal property held in the course or furtherance, to any degree, of carrying on an enterprise to which an ABN has been allocated.

See definition for 'consumer property' in section 10 of the PPS Act.

discharged registration

A registration that has passed its expiry date or has been removed from the PPS Register.

giving of notice identifier

The giving of notice identifier is the reference number or text that is used to identify, or to provide more information, about the registration. The giving of notice identifier, where it exists, must be included in correspondence to the secured party relating to that registration. 

goods

Goods means tangible personal property, including:

  1. crops
  2. livestock
  3. wool
  4. extracted minerals, and
  5. satellites and other space objects

but does not include financial property or an intermediated security.

grantor

A person who owns or has an interest in the personal property to which a security interest is attached.

A grantor includes a person who receives goods under a commercial consignment, a lessee under a PPS lease, and a transferor of an account or chattel paper.

grantor identification

Grantor identification or identifier refers to the details that are used to identify the grantor in a registration.

The rules for grantor identification are set out in the PPS Regulations.

In brief, the Regulations provide that where the grantor is an individual, the identifiers are to be sourced from the documents in this order:

  • the current driver's licence issued by an Australian state or territory
  • proof of age card issued by an Australian state or territory
  • Australian passport
  • Australian visa
  • passport from country grantor usually resides, or
  • details on birth certificate.

If the grantor is an organisation, different rules apply depending on whether the grantor is a body corporate, a partnership, trustee of a trust, or a body politic.

See the PPS Regulations for more information on the grantor identification rules.

HIN (Hull Identification Number)

The unique identifier for a boat allocated by a registration authority of a state or territory or other authorised persons.

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identifier type

This is the type of identifier used for organisations (both grantors and secured parties), which includes ARSN, ACN, ARBN, and ABN.

intangible property

Intangible property, for the PPS Act and the PPS Register, means personal property that is not any of the following:

  • financial property
  • goods, or
  • an intermediated security (see 'intermediated security').

See definition of 'intangible property' under section 10 of the PPS Act.

interest

In relation to personal property, includes a right in the personal property.

inventory

Personal property used in the ordinary course of business by an entity with an ABN, including:

  • property held for sale, or lease
  • property held to be provided under a contract for services
  • property held as raw materials or as work in progress, and
  • property used or consumed as materials.

See definition of 'inventory' under section 10 of the PPS Act.

ITSA

Insolvency and Trustee Service Australia

motor vehicle

A car, truck, motor bike, tractor, trailer, caravan or other property that:

  1. has one or more motors with total power greater than 200 W and capable of propelling the property to speeds of at least 10km/h, or
  2. is capable, when being towed or attached to a motor vehicle, of travelling at a speed greater than 10 km/h

and which has a vehicle identification number, a chassis number, or a manufacturer's number.

NEVDIS

National Exchange of Vehicle and Driver Information System. NEVDIS is a national database of all registered vehicles in Australia. The PPS Register interfaces with NEVDIS to provide additional information on motor vehicles when registrations are made against motor vehicles as collateral, and when searches are conducted. 

 

organisational identifier

The organisation identifier is the name or number that identifies the organisation.

This can include the name, ACN, ABN, ARBN, or ARSN allocated to an organisation.

It is important to ensure that the correct organisation identifier is included in the registration (incorrect identifiers for grantors may lead to the registration being ineffective). The identifier rules are contained in the PPS Regulations.

outboard motor

outboard motor means an engine that:

  1. has a propeller and a manufacturer's number,
  2. is designed to be attached to a boat or vessel, and
  3. is intended for use to propel a boat or vessel.

Outboard motors generally belong to the collateral class 'other goods'.

 

perfection

Perfection of a security interest gives it priority over unperfected security interests in the collateral. A security interest may be perfected by registration, possession, or control. In certain circumstances, a security interest may only be temporarily perfected.

personal property

Any form of property, other than land or a right or entitlement under a Commonwealth, state or territory law that declares that the right or entitlement is not personal property for the purposes of the PPS Act.

PMSI (purchase money security interest)

A PMSI is a security interest in collateral created by a seller who secures the obligation to pay the purchase price, or a person who provides the value to purchase the personal property. A PMSI can also be the interest of a lessor or bailor under a PPS lease or the interest of a consignor who delivers property under a commercial consignment. Section 14 of the PPS Act provides the full definition of this term.

PPS

Personal properties securities

PPS Act 2009

The Personal Property Securities Act 2009 (Cth), as amended from time to time. See the ComLaw website to view the legislation.

PPS lease

A lease or bailment for an indefinite period or for more than one year. However, for serial numbered goods (for example, motor vehicles), a PPS lease need only be for a term of 90 days.

PPS Regulations

The PPS Regulations are part of the legislation and provide the rules to administer it. Visit the ComLaw website to view the PPS Regulations.

PPS Register

Personal Property Securities Register. A real-time online register where data in respect of security interests, as well as certain prescribed personal property are registered. The PPS Register acts as a noticeboard rather than as a definitive record of security interests in personal property. It is not a register of title or ownership of personal property.

PPS Register administrator

A user who has been specifically granted the authority to manage some or all of the system, and may have special privileges to override portions of the system.

priority

The order in which interests in property are enforced. Priority is usually determined by the time of creation of the interest, and earlier interest prevailing over a later interest. Division 3 of Part 2.6 of the PPS Actoutlines the rules governing the priority of security interests.

Privacy Act

Legislation that protects individuals from the unauthorised collection, storage, use and disclosure of information about themselves and the possible compromises resulting from unauthorised release of that information. The PPS Act states that an unauthorised search may contravene the Privacy Act 1988.

proceeds

The identifiable or traceable personal property derived directly, or indirectly, from dealing with collateral or the proceeds of collateral. An example of proceeds is money received on sale of the collateral.

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Registration

A registered financing statement (as amended from time to time) with respect to a security interest or personal property as prescribed.

registration commencement time

The date on which the PPS Register begins to operate. The registration commencement time is at:

  • the start of the first day of the month that is 26 months after the month in which this Act is given the Royal Assent, or
  • an earlier time determined by the Minister.

Example:

If this Act were given the Royal Assent on 10 December 2009, the registration commencement time under paragraph (a) would be the start of 1 February 2012.

registration end time / registration end date

The date on which the registration will end. For non-consumer property, there may be no stated end time or the end time may be up to 25 years after registration. In the case of consumer or serial numbered property, the end time may be up to seven years after registration.

registration events

The registration of a financing statement or a financing change statement with respect to a security interest (includes discharge of a registration). A registration event will ordinarily generate a verification statement.

registration kind

The PPS Register contains mostly registrations over personal property that is subject to a security interest. However, there will also be other 'kinds' of registrations. 

The registration kinds on the PPS Register include:

  • security interest
  • proceeds of crime
  • hoon lien
  • court order, and
  • other prescribed property (see the 'giving of notice identifier' details for information about why the property is being registered on the PPS Register).

registration number

The registration number is provided to a user once a registration has been successfully made. The registration number will need to be supplied in order to amend a registration.

registration states

A registration can be in one of the following states:

  • current
  • expired
  • removed, or
  • archived

Regulations

The Regulations made under the PPS Act 2009. The PPS Regulations are available on the Comlaw website.

search certificate

If there is no evidence to the contrary, search certificates are proof of the data returned in a search result, and are admissible as evidence in a court or tribunal.

search certificate number

A unique number that is assigned to each search certificate issued.  Multiple search certificates can be issued for each search number. The search certificate number can be used to reissue a search certificate at a later time.

search number

A number that is returned with a search. It identifies the search that was undertaken. The search number can be used to view the search result again at a later time. 

secured party

The person who holds a security interest in personal property.

secured party group/s

Secured party groups are a system construct used in the PPS Register to define secured parties. A secured party group consists of one or more secured parties (either individuals or organisations). It is the secured party group that is assigned to a registration.

secured party group number

A unique identifier for each secured party group.

security interest

An interest in personal property provided for by a transaction that, in substance, secures payment or performance of an obligation.

serial number

In relation to collateral, means a serial number by which the PPS Regulations require, or permit, the collateral to be described in a registration.

The PPS Regulations provide that the following may be described by serial number:

  • commercial property that is:
    • motor vehicle
    • watercraft, and
    • certain intangible property (patent, trade mark, plant breeder's right, and design).

The PPS Regulations provide that the following must be described by serial number:

  • consumer property that is:
    • motor vehicle
    • watercraft
    • certain intangible property (patent, trade mark, plant breeder's right, and design), and
    • aircraft (airframe, aircraft engine, helicopter and small aircraft).
  • commercial property that is:
    • aircraft (that is further described as airframe, aircraft engine, helicopter and small aircraft).

subordinate / subordination

A secured party can indicate at registration or subsequently (by using the amend registration function) that a registration is (or is to be) subordinated to any other security interest. See section 61 of the PPS Act for more details.

 

third party

An intermediary or broker who is authorised to conduct transactions on behalf of a secured party.

vehicle registration number

A series of numbers and/or letters that is assigned to a vehicle by the relevant road traffic authority upon registration of a motor vehicle.

verification databases

A database (for example, NEVDIS, ABR & ASIC) against which PPS Register data will be verified.

verification reports

A report produced during migration of registrations from transitional registers to the PPS Register. The verification report verifies which registrations were successfully to the PPS Register and those which were not successfully migrated.

verification statement

A document confirming the details of a registration on the PPS Register to the SPG's address for service.

Secured parties should ensure that the details on the verification statement received are correct, since certain mistakes will mean that the registration is ineffective.

VIN (Vehicle Identification Number)

The VIN is a 17 character unique serial number used to identify a motor vehicle.

If a motor vehicle has a VIN, then a registration or a search for that motor vehicle on the PPS Register should be made against that VIN.

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