Personal Property Securities Act in Force From l May 2002

After crying wolf several times, the Ministry of Economic Development has set May lst next year as the date for the Personal Property Securities Act to come into force. This means “no one who lends money, provides credit or supplies goods against the security of personal property should be complacent”, writes Buddle Findlay’s team on the subject.
“The PPSA will introduce an entirely new regime for security over personal property.
“Once you are familiar with it, life will be that much easier as the same rules will apply to everyone and to all types of security interests.
But you will need time to prepare your business procedures and documentation to take advantage of new features:
* Any person (not just companies) will be able to give security over future property, so sole trader, partnership or trading trust will be able to borrow on the security of all its business assets as they change over time, by signing only one security agreement.
* Suppliers will get better security for unpaid goods but only if they register.
* How security is taken will no longer be relevant, eg the same rules will apply to ROI sales and chattel mortgages.May 2002
After crying wolf several times, the Ministry of Economic Development has set May lst next year as the date for the Personal Property Securities Act to come into force. This means “no one who lends money, provides credit or supplies goods against the security of personal property should be complacent”, writes Buddle Findlay’s team on the subject.
“The PPSA will introduce an entirely new regime for security over personal property.
“Once you are familiar with it, life will be that much easier as the same rules will apply to everyone and to all types of security interests.
But you will need time to prepare your business procedures and documentation to take advantage of new features:
* Any person (not just companies) will be able to give security over future property, so sole trader, partnership or trading trust will be able to borrow on the security of all its business assets as they change over time, by signing only one security agreement.
* Suppliers will get better security for unpaid goods but only if they register.
* How security is taken will no longer be relevant, eg the same rules will apply to ROI sales and chattel mortgages.