Migrated Registrations and the PPSA
On the 30th of January 2012, all 35 Australian registries such as the ASIC register migrated to the PPSR. What some did not know was that there is a grace period set of 5 years to ensure these registrations are effective or legitimate. Some of the migrated registration may have not have contained the information required by the PPS Act.
There was a determination made called the â€œMigrated Security Interest and Effective Registrationâ€ Determination 2011. This determination was made to assist migrated registrations remain valid even if they were deficient or defective for reasons of incorrect information for example. This protection only assured validity till the end date of the registration or if there was no end date then until the 31st of January 2017.
So, all of the â€œfixed and floatingâ€ charges that were migrated five years ago are now going to become ineffective if there was any information that is required under the PPSA missing from the registration. Not all of the migrated data will be ineffective but it may be a wise secured party that checks to ensure validity.
There are clauses within the PPSA that may assist but this stands as a reminder that the old days of taking a secured interest and thinking you are covered forever is no longer the case.
Regional Manager at EC Credit Control Pty Ltd