- When registering a security interest on the Personal Property Securities Register, it is important to have regard to the time limits set out in section 588FL of the Corporations Act 2001 (Cth).
- If it is discovered that time limits have not been met or mistakes have been made in the registration, practitioners should act quickly to properly register those interests and seek an extension of time under section 588FM of the Corporations Act.
Defective registrations pose a serious problem for secured parties under the Personal Property Securities Act 2009 (Cth) (‘PPSA’). The requirements for effective registration on the Personal Property Securities Register (‘PPSR’) are highly technical and mistakes are easily made. As a result, registrations are vulnerable to being found ineffective when there are defects. An ineffective registration on the PPSR will, in the absence of other methods of perfection, be treated as if there was no registration and will make the security interest vulnerable to vesting under s 267 of the PPSA. For corporate grantors, s 588FL of the Corporations Act 2001 (Cth) (‘Corporations Act’) imposes certain time limits for effective registration.
This article will discuss sections 588FL and 588FM of the Corporations Act and analyse the key considerations of the courts in determining applications to extend time under section 588FM.