{"id":211076,"date":"2021-10-15T12:19:49","date_gmt":"2021-10-14T23:19:49","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=211076"},"modified":"2021-10-25T18:01:38","modified_gmt":"2021-10-25T05:01:38","slug":"security-interest-ppsa","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/corporations\/security-interest-ppsa\/","title":{"rendered":"What is a Security Interest Under The NZ PPSA?"},"content":{"rendered":"

Are you a business that sells goods or buys goods on credit? You need to ensure you are aware of the laws surrounding security interests. The main act regulating security interests in New Zealand is the <\/span>Personal Property Securities Act 1999<\/span><\/i> (PPSA). The purpose of the PPSA is to consolidate the confusing common law that governed security interests for many years. One of the features of the PPSA<\/a> is that it defines common terms very clearly, including security interests. This article will explain what a security interest is under the PPSA in New Zealand.<\/span><\/p>\n

What is the Personal Properties Securities Act 1999?<\/span><\/h2>\n

When you sell goods on credit, you may need to make sure your buyer follows through with the rest of the transaction. However, if your buyer goes bankrupt<\/a> before paying off the rest of their payment, there could be an issue. This is because several creditors may want to take the good you sold to pay off the buyer\u2019s debt. The PPSA clarifies who has priority over a good when there are competing creditors vying for it. One of the main features of the PPSA is the Personal Property Securities Register.<\/span><\/p>\n

What is the Personal Property Securities Register?<\/span><\/h2>\n

The PPSA created the Personal Property Securities Register (PPSR) to offer a public database of all registered security interests in New Zealand. Registering a security interest<\/a> on the PPSR is known as \u2018perfecting\u2019 it. A perfected security interest will always have priority over an unperfected one under the PPSA. This means that to have the best chance of receiving your goods back if your buyer goes bankrupt. Therefore, you should always register your security interests.\u00a0<\/span><\/p>\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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