Accidentally removed a registration on the PPSR?

The Personal Property Securities Register ("PPSR") has revolutionised the way we deal with secured financing arrangements involving personal property.

But while the ease of use means that registering, tracking and discharging security interests has become much easier so has the ability to make a mistake.

This week on You Legal TV we look at what happens when you accidentally remove a registration from the PPSR, what steps you need to take to restore it and in what circumstances that can happen.

See below for the complete transcript of this episode -

Today, we're going to address concerns about what happens when someone incorrectly removes a registration from the Personal Properties Securities Register. The Act provides that the Registrar may reinstate incorrectly removed data. The Registrar has traditionally taken a very strict interpretation of this provision and would only reinstate data that was removed by the Registrar themselves.

The Federal Court recently considered this position and determined that the legislation allowed the Registrar to reinstate a registration where they were satisfied it had been incorrectly removed. This process involved providing a written statement from the security guarantor stating that they have not yet discharged their obligations and do not object to the reinstatement of the registration. He may also be required to furnish the Registrar with additional information as to what other parties might be affected.

This process, on it's face, is quite simple. But what happens when there is a dispute? Where only one party insists that data has been incorrectly removed, but the guarantor does not consent to the restoration, or where a third party has been granted an interest. The Registrar is not the appropriate person to adjudicate a dispute like this. So, what can you do to avoid these issues? Firstly, make sure your interest is correctly registered from the beginning, and undertake an additional search after your registration.

If you receive notice that your security interests have been amended or removed, you must respond quickly. In some cases, it may be necessary to create a new registration to prevent third parties who have diligently searched the register from taking an interest in the property. You must then notify the Registrar by completing the Request to Restore.

If you have any questions about the PPRS, please contact the team at You Legal. We're available to help you navigate the PPRS regime to make sure your security interests are sound.

What Should I Do Next?

Contact us if you would like further legal advice on PPSR. Our lawyers at You Legal will be happy to assist you in whatever way we can.

* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.