Personal Property Securities Act 2009 (Cth)

Personal Property Securities Act 2009

No. 130, 2009

Compilation No. 22

Compilation date: 14 October 2024

Includes amendments: Act No. 39, 2024

About this compilation

This compilation

This is a compilation of the Personal Property Securities Act 2009 that shows the text of the law as amended and in force on 14 October 2024 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents Chapter 1—Introduction Part 1.1—Preliminary 1 Short title 2 Commencement 2A Schedule 1 3 Guide to this Act Part 1.2—General application of this Act 4 Guide to this Part 5 Crown to be bound 6 Connection with Australia 7 Application in the external Territories 8 Interests to which this Act does not apply Part 1.3—Definitions Division 1—Introduction 9 Guide to this Part Division 2—The Dictionary 10 The Dictionary 11 Application of the Acts Interpretation Act 1901 Division 3—Concepts relating to security interests and personal property 12 Meaning of security interest 13 Meaning of PPS lease 14 Meaning of purchase money security interest 15 Meaning of intermediated security and related terms Chapter 2—General rules relating to security interests Part 2.1—Guide to this Chapter 16 Guide to this Chapter Part 2.2—Security interests: general principles 17 Guide to this Part 18 General rules about security agreements and security interests 19 Enforceability of security interests against grantors—attachment 20 Enforceability of security interests against third parties 21 Perfection—main rule 22 Perfection—goods possessed by a bailee Part 2.3—Possession and control of personal property 23 Guide to this Part 24 Possession 25 Control of an ADI account 26 Control of intermediated securities 27 Control of investment instruments 28 Control of a letter of credit 29 Control of negotiable instruments that are not evidenced by a certificate Part 2.4—Attachment and perfection: specific rules Division 1—Introduction 30 Guide to this Part Division 2—Proceeds and transfer 31 Meaning of proceeds 32 Proceeds—attachment 33 Proceeds—perfection and temporary perfection 34 Transferred collateral—temporary perfection after transfer Division 3—Collateral returned to grantor or debtor 35 Returned collateral—from bailee 36 Returned collateral—negotiable instruments and investment instruments 37 Returned collateral—following sale or lease 38 Returned collateral—accounts and chattel paper Division 4—Relocation of collateral or grantor to Australia etc. 39 Relocation—main rule 40 Relocation—intangible property and financial property Part 2.5—Taking personal property free of security interests 41 Guide to this Part 42 Application of this Part 43 Taking personal property free of unperfected security interest 44 Taking personal property free of security interest if serial number incorrect or missing 45 Taking motor vehicles free of security interest 46 Taking personal property free of security interest in ordinary course of business 47 Taking personal, domestic or household property free of security interest 48 Taking currency free of security interest 49 Taking investment instrument or intermediated security free of security interest in the ordinary course of trading 50 Taking investment instrument free of security interest 51 Taking intermediated security free of security interest 52 Taking personal property free of temporarily perfected security interest 53 Rights of secured party and transferee on taking personal property free of security interest Part 2.6—Priority between security interests Division 1—Introduction 54 Guide to this Part Division 2—Priority of security interests generally 55 Default priority rules 56 How a security interest is continuously perfected 57 Priority of security interests perfected by control 58 Priority of advances 59 Priority rules and intervening security interests 60 Transfer of security interests does not affect priority 61 Voluntary subordination of security interests Division 3—Priority of purchase money security interests 62 When purchase money security interests take priority over other security interests 63 Priority between competing purchase money security interests in collateral 64 Non‑purchase money security interests in accounts 65 Possession of goods shipped by a common carrier Division 4—Priority of security interests in transferred collateral 66 Application of this Division 67 Priority when transferor‑granted interest has been continuously perfected 68 Priority when there is a break in the perfection of the transferor‑granted interest Division 5—Priority of creditors, and purchasers of negotiable instruments, chattel paper and negotiable documents of title 69 Priority of creditor who receives payment of debt 70 Priority of person who acquires a negotiable instrument or an interest in a negotiable instrument 71 Priority of person who acquires chattel paper or an interest in chattel paper 72 Priority of holder of negotiable document of title Division 6—Priority of other interests 73 Priority between security interests and declared statutory interests 74 Execution creditor has priority over unperfected security interest 75 Priority of security interests held by ADIs 76 Priority of security interests in returned goods 77 Priority of certain security interests if there is no foreign register Part 2.7—Transfer of interests in collateral 78 Guide to this Part 79 Transfer of collateral despite prohibition in security agreement 80 Rights on transfer of account or chattel paper—rights of transferee and account debtor 81 Rights on transfer of account or chattel paper—contractual restrictions and prohibitions on transfer Chapter 3—Specific rules for certain security interests Part 3.1—Guide to this Chapter 82 Guide to this Chapter Part 3.2—Agricultural interests 83 Guide to this Part 84 Relationship between security interest in crops and interest in land 84A Attachment of security interests to crops while they are growing and to the products of livestock 85 Priority of crops 86 Priority of livestock Part 3.3—Accessions 87 Guide to this Part 88 Continuation of security interests in accessions 89 Default rule—interest in accession has priority 90 Priority interest in whole—before security interest in accession is perfected 91 Priority interest in whole—security interest in accession attaches after goods become accession 92 Secured party must not damage goods when removing accession 93 Reimbursement for damage caused in removing accessions 94 Refusal of permission to remove accession 95 Secured party must give notice of removal of accession 96 When person with an interest in the whole may retain accession 97 Court order about removal of accession Part 3.4—Processed or commingled goods 98 Guide to this Part 99 Continuation of security interests in goods that become processed or commingled 100 Perfection of security interest in goods that become processed or commingled applies to product or mass 101 Limit on value of priority of goods that become part of processed or commingled goods 102 Priority where more than one security interest continues in processed or commingled goods 103 Priority of purchase money security interest in processed or commingled goods Part 3.5—Intellectual property 104 Guide to this Part 105 Implied references to intellectual property rights 106 Intellectual property licences and transfers of intellectual property Chapter 4—Enforcement of security interests Part 4.1—Guide to this Chapter 107 Guide to this Chapter Part 4.2—General rules 108 Guide to this Part 109 Application of this Chapter 110 Rights and remedies 111 Rights and duties to be exercised honestly and in a commercially reasonable manner 112 Rights and remedies under this Chapter 113 Recovering judgment or issuing execution does not extinguish a security interest in collateral 114 Rights and remedies under this Chapter are cumulative 115 Contracting out of enforcement provisions 116 Application while there is a receiver or another controller of property 117 Obligations secured by interests in personal property and land 118 Enforcing security interests in accordance with land law decisions 119 Relationship with consumer credit legislation 120 Enforcement of security interests in liquid assets—general 121 Enforcement of security interests in liquid assets—notice to higher priority parties and grantor Part 4.3—Seizure and disposal or retention of collateral Division 1—Introduction 122 Guide to this Part Division 2—Seizing collateral 123 Secured party may seize collateral 124 Secured party who has perfected a security interest in collateral by possession or control 125 Obligation to dispose of or retain collateral 126 Apparent possession of collateral 127 Seizure by higher priority parties—notice Division 3—Disposing of collateral (including by purchasing collateral) 128 Secured party may dispose of collateral 129 Disposal by purchase 130 Notice of disposal of collateral 131 Duty of secured party disposing of collateral to obtain market value 132 Secured party to give statement of account 133 Disposing of collateral free of interests Division 4—Retaining collateral 134 Proposal of secured party to retain collateral 135 Notice of retention of collateral 136 Retaining collateral free of interests Division 5—Objection to purchase or retention 137 Persons entitled to notice may object to proposal 138 Person making objection may be requested by secured party to prove interest Division 6—Seizure and disposal or retention of crops and livestock 138A Meaning of take and water source 138B Seizure and disposal or retention of crops 138C Seizure and disposal or retention of livestock Part 4.4—Rules applying after enforcement 139 Guide to this Part 140 Distribution of proceeds received by secured party 141 Secured party may take steps to reflect transfer of title 142 Entitled persons may redeem collateral 143 Entitled persons may reinstate security agreement 144 When certain enforcement notices are not required Chapter 5—Personal Property Securities Register Part 5.1—Guide to this Chapter 145 Guide to this Chapter Part 5.2—Establishment of the register 146 Guide to this Part 147 Personal Property Securities Register 148 What the register contains Part 5.3—Registration 149 Guide to this Part 150 Registration—on application 151 Registration—belief about security interest 152 Registration—location of personal property and interested persons outside Australia 153 Financing statements with respect to security interests 154 Financing statements with respect to prescribed property 155 Meanings of verification statement and registration event 156 Verification statements—Registrar to give to secured parties 157 Verification statements—secured parties to give notice to grantors 158 Verification statements—publication as alternative Part 5.4—When a registration is effective 159 Guide to this Part 160 Registration time—general 161 Registration time—security agreements and interests 162 Registration time—transfers 163 Effective registration 164 Defects in registration—general rule 165 Defects in registration—particular defects 166 Defects in registration—temporary effectiveness 167 Security interest in certain property becomes unperfected 168 Maintenance fees Part 5.5—Accessing the register to search for data 169 Guide to this Part 170 Search—general 171 Search—criteria 172 Search—by reference to details of grantor who is an individual 173 Search—interference with privacy 174 Search—written search results and evidence etc. 175 Copies of financing statements and verification statements 176 Reports by Registrar Part 5.5A—Conditions on data access 176A Guide to this Part 176B Access to registered data—conditions 176C Access to third party data Part 5.6—Amendment demands Division 1—Introduction 177 Guide to this Part 178 How amendment demands are given Division 2—Amendment demands: administrative and judicial process Subdivision A—Administrative process 179 Scope of Subdivision 180 Administrative process—amendment notices 181 Administrative process—registration amendments Subdivision B—Judicial process 182 Judicial process for considering amendment demand Part 5.7—Removal of data and correction of registration errors 183 Guide to this Part 184 Removal of data—general grounds 185 Removal of data—registration ineffective for 7 years or more 186 Incorrectly removed data—restoration 187 Records of removed data 188 Correction of registration errors Part 5.8—Fees, administrative review and annual reports 189 Guide to this Part 190 Registration and search fees 191 Review of decisions 192 Annual reports Part 5.9—Registrar of Personal Property Securities 193 Guide to this Part 194 Registrar—establishment of office 195 Registrar—functions and powers 195A Registrar—investigations 196 Registrar—acting appointments 197 Registrar—delegation 198 Registrar—resignation 199 Registrar—termination 200 Deputy Registrar—establishment of office 201 Deputy Registrar—functions and powers 202 Deputy Registrar—resignation 203 Deputy Registrar—termination Chapter 6—Judicial proceedings Part 6.1—Guide to this Chapter 204 Guide to this Chapter Part 6.2—Judicial proceedings generally Division 1—Introduction 205 Guide to this Part 206 Scope of this Part Division 2—Conferral of jurisdiction 207 Jurisdiction of courts 208 Cross‑jurisdictional appeals 209 Courts to act in aid of each other Division 3—Transfers between courts 210 Application of this Division 211 Exercise of transfer power 212 Criteria for transfers between courts 213 Initiating transfers between courts 214 Documents and procedure 215 Conduct of transferred proceedings 216 Entitlement to practise as barrister or solicitor 217 Limitation on appeals Division 4—Registrar's role in judicial proceedings 218 Intervention in judicial proceedings 219 Initiation of judicial proceedings Part 6.3—Civil penalties and enforceable undertakings 220 Guide to this Part 221 Civil penalty provisions 222 Enforceable undertakings Chapter 7—Operation of laws Part 7.1—Guide to this Chapter 232 Guide to this Chapter Part 7.2—Australian laws and those of other jurisdictions 233 Guide to this Part 234 Scope of this Part 235 Meaning of located 236 Commonwealth laws may provide for governing law 237 Express agreement 238 Governing laws—goods 239 Governing laws—intangible property 240 Governing laws—financial property and rights evidenced by letters of credit 241 Governing laws—proceeds Part 7.3—Constitutional operation Division 1—Introduction 242 Guide to this Part Division 2—Constitutional basis 243 Constitutional basis for this Act 244 Meaning of referring State 245 Meaning of referred PPS matters 246 Non‑referring State operation—overview 247 Non‑referring State operation—persons 248 Non‑referring State operation—activities 249 Non‑referring State operation—interests 250 Non‑referring State operation—inclusion of data in register 251 Personal property taken free of security interest when Act begins to operate 252 Priority between constitutional and non‑constitutional security interests Division 3—Constitutional guarantees 252A No constitutional preference to one State over another 252B No unjust acquisition of property Part 7.4—Relationship between Australian laws Division 1—Introduction 253 Guide to this Part Division 2—Concurrent operation 254 Concurrent operation—general rule 255 Concurrent operation—regulations may resolve inconsistency Division 3—When other laws prevail 256 When other laws prevail—certain other Commonwealth Acts 257 When other laws prevail—security agreements 258 When other laws prevail—personal property, security interests and matters excluded from State amendment referrals 259 When other laws prevail—exclusion by referring State law or Territory law Division 4—When this Act prevails 261 When this Act prevails—registration requirements 262 When this Act prevails—assignment requirements 263 When this Act prevails—formal requirements relating to agreements 264 When this Act prevails—attachment and perfection of security interests Chapter 8—Miscellaneous Part 8.1—Guide to this Chapter 265 Guide to this Chapter Part 8.2—Vesting of certain unperfected security interests 266 Guide to this Part 267 Vesting of unperfected security interests in the grantor upon the grantor's winding up or bankruptcy etc. 267A Vesting in grantor of security interest that attaches after winding up etc. 268 Security interests unaffected by section 267 269 Certain lessors, bailors and consignors entitled to damages Part 8.3—Exercise and discharge of rights, duties and obligations 270 Guide to this Part 271 Entitlement to damages for breach of duties or obligations 272 Liability for damages 273 Application of Act not affected by secured party having title to collateral Part 8.4—Provision of information by secured parties 274 Guide to this Part 275 Secured party to provide certain information relating to security interest 276 Obligation to disclose successor in security interest when request made 277 Time for responding to a request 278 Application to court for exemption or extension of time to respond to requests 279 Persons may recover costs arising from request 280 Application to court for response to request etc. 281 Application to court in relation to costs charged 282 Consequences of not complying with court order 283 Estoppels against persons who respond to a request Part 8.5—Notices and timing 284 Guide to this Part 285 Application of this Part—notices etc. 286 Notices—writing 287 Notices—registered secured parties 288 Notices—more than one registered secured party 289 Notices etc. must be given to persons registered as secured parties using identifier 290 Notices—deceased persons 291 Notices—Court orders 292 Notices—formal defects 293 Timing—applications for extension of time 294 Timing—references to time in this Act Part 8.6—Onus of proof and knowledge 295 Guide to this Part 296 Onus of proof 297 Meaning of constructive knowledge 298 Actual or constructive knowledge by bodies corporate and other entities 299 Actual or constructive knowledge in relation to certain property transfers 300 Registration of data does not constitute constructive notice Part 8.7—Forms and regulations 301 Guide to this Part 302 Approved forms 303 Regulations Chapter 9—Transitional provisions Part 9.1—Guide to this Chapter 304 Guide to this Chapter Part 9.2—Key concepts 305 Guide to this Part 306 Meaning of migration time and registration commencement time 307 Meaning of transitional security agreement 308 Meaning of transitional security interest Part 9.3—Initial application of this Act 309 Guide to this Part 310 When this Act starts to apply, and in relation to which matters 311 Enforceability of transitional security interests against third parties 312 Declared statutory security interests 313 Enforcement of security interests in intellectual property licences 314 Enforcement of security interests provided for by security agreements 315 Starting time for registrations 316 Governing laws 317 Constitutional and non‑constitutional interests 318 References to charges and fixed and floating charges Part 9.4—Transitional application of this Act Division 1—Introduction 319 Guide to this Part Division 2—Attachment, perfection and priority of transitional security interests 320 Guide to priority rules for transitional security interests 321 Attachment rule 322 Perfection rule 322A Priority rule—priority between transitional security interest and security interest perfected by control 323 Priority rule—priority otherwise undetermined 324 Priority rule—certain security interests upon insolvency or bankruptcy Division 6—Migration of personal property interests 330 Scope of Division 331 Requirement for Commonwealth officers etc. to provide data 332 Meaning of migrated security interest 333 Registration with respect to migrated data 334 Incorrectly registered migrated data 335 No requirement for notice of verification statement Division 7—Preparatory registration relating to transitional security interests 336 Preparatory registration—transitional security interests Division 8—Transitional security interests: registration defects 337 Registration effective despite certain defects 337A Registration defective if collateral is not covered by transitional security agreement Part 9.5—Charges and fixed and floating charges 338 Guide to this Part 339 References to charges and fixed and floating charges 340 Meaning of circulating asset 341 Meaning of control and inventory 341A Control of an ADI account Part 9.6—Review of operation of Act 342 Guide to this Part 343 Review of operation of Act Schedule 1—Transitional provisions relating to amendments of this Act Part 1—Transitional provisions relating to the Personal Property Securities Amendment (Deregulatory Measures) Act 2015 1 Definitions 2 Application of amendments relating to serial numbered goods Part 2—Application provision relating to the Personal Property Securities Amendment (PPS Leases) Act 2017 3 Application provision relating to the Personal Property Securities Amendment (PPS Leases) Act 2017 Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history