Personal Properties Securities Act - 11 October 1999
[ Last Updated 9 December 2005 ]
The Personal Property Securities Bill was given its final reading in Parliament on 6 October. The legislation will clarify the law and reduce transaction costs associated with giving and taking security interests in personal property.
It will also make it easier and cheaper for those seeking to deal with personal property to check whether the property is subject to a prior security interest.
The Act affects all security interests in personal property, such as cars, computers and boats (under 24 metres in length), but does not apply to land. A security interest over these items secures the payment of money, or the performance of an obligation.
The Act:
- Creates uniform rules that apply to every transaction that in substance secures payment or performance of an obligation;
- provides ways for determining priority between competing security interests;
- sets out default provisions for the enforcement of security interests in personal property other than consumer goods;
- establishes a centralised personal property securities register, based solely on the internet, which will make it easier and cheaper to find out about an existing security interest.
The Act will come into force on a date to be determined by the Governor-General by Order in Council. This is likely to be towards the end of 2000. The Ministry is currently working on regulations to be promulgated under the Act and on setting up the Personal Property Securities Register.
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