PPSA Glossary of Acronyms & Terms
The ABN is a unique 11 digit identifier issued to all entities registered in the Australian Business Register (ABR). It is used when dealing with government agencies (including the Australian Taxation Office) and other businesses.
An ABN can have a status of active or cancelled. A status of cancelled means the business has ceased trading. You need it for certain PPSA registrations.
The Australian Company Number is a unique nine-character number issued by ASIC to every company registered under the Corporations Act 2001 as an identifier. It is issued upon incorporation and cannot be changed. You need it to register a PPSA on a company.
Australian Financial Security Register manages the application of bankruptcy and personal property securities laws.
All present and after- acquired property, no exceptions. A collateral class registerable on the PPSR (Personal Property Securities Register). It includes all personal property over which the grantor has an interest both at the time a registration is made and after.
Has a technical meaning, but it is essentially stock, money and other things that might be traded on a regular basis as part of ordinary business.
Personal property that has a security interest attached to it as a result of an agreement between a grantor and a secured party. For example, property that can be taken by a lender if a loan is not repaid.
When making a registration on the Personal Property Securities Register (PPSR), the collateral must be described by a collateral class.
The information entered by a secured party when making a registration on the Personal Property Securities Register (PPSR)
As a secured party you can choose to enter a Giving of Notice Identifier (GONI) on a PPSR registration which identifies a record of the registration for your secured party.
An individual or an organisation who owns or has an interest in the personal property to which a security interest is attached. This is the party who owes the money.
A general security agreement is widely drawn security agreement usually designed to capture as much property as possible.
A HIN is the nautical equivalent of the VIN (Vehicle Identification Number) on your car. Most Australian boats have a HIN attached or stamped into the hull. Usually 14 digits and a combination of numbers and letters.
Intangible property, for the PPS Act and the PPS Register, means personal property that is not any of the following:
- financial property
- an intermediated security.
Giving your security interest the best priority and effectiveness, and enabling it to be enforced against the customer and third parties (including on insolvency) if and when needed, by a properly attached and documented security interest being registered on the PPSR.
Property, other than land, buildings and fixtures to land including:
- motor vehicles
- intellectual property (such as copyright, patents and designs), bank accounts and debts (sometimes known as receivables)
- shares and other financial property
- and private commercial licences
It does not apply to direct water rights, nor to most government issued licences or rights.
The Personal Property Securities Act 2009 (Cth) is the law on security interests in personal property. It operates throughout Australia.
The PPSR is the official government register of security interests in personal property.
A purchase money security interest (PMSI) A security interest over particular collateral, granted to secure debt incurred in acquiring the collateral in question from the secured party (a seller PMSI), or granted to secure funds lent by a secured party and used by the grantor for the purpose of enabling the grantor to acquire the collateral
A lease or bailment for at least two years, or an indefinite period but not until the lessee’s or bailee’s possession extends for more than two years. It should be registered.
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 Act outlines the rules governing the priority of security interests.
Retention of Title refers to the types of clauses that may be included in contracts where a purchaser may take possession of property, but does not acquire title to the property from the seller until the full purchase price is paid. This should be covered in your terms of trade.
The old motor vehicle search register is now part of the PPSR
The person who holds a security interest in personal property. The person who lends the money.
A security interest is most commonly created when a secured party (such as a lender) takes an interest in personal property of a grantor (such as a borrower), as security for a loan or other obligation. The security interest means the secured party can take the personal property (known as the collateral) if the secured obligation is not met.
Each registration is issued with a registration token (or token). A token is used to authorise a user to amend or discharge a registration. A record of the token should be kept safe and made available only to personnel authorised to amend or discharge a registration. There is only one token per registration. If a token is lost or compromised a new token can be requested.
A unique 17 character 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 PPSR should be made against that VIN.