Final PPS amendments introduced

The Personal Property Securities (Corporations and Other Amendments) Bill 2011 has been introduced into Parliament.

It contains the final set of amendments to the Personal Property Securities Act 2009 and consequential amendments to the Corporations Act prior to the Personal Property Securities Register commencing in October 2011.

The amendments to the PPS Act will:
• provide exemptions to the rules on taking personal property free of security interests for temporarily perfected transitional security interests and transitional
security interests which were not previously registered by serial number
• ensure that the definition of security interest is consistent with the New Zealand legislation and remove any potential for confusion
• clarify that CHESS securities are intermediated securities and the means by which CHESS securities can be subject to control
• ensure access to third party data through the Register (such as that provided by the National Exchange of Vehicle and Driver Information System (NEVDIS)
• impose conditions on accessing and using data on the Register to ensure that parties cannot sell this data
• enable the Registrar to investigate breaches of the rules authorising searches of the Register and registration of security interests on the Register
• clarify the provisions on security interests in authorised deposit-taking institutions and the provisions on control of inventory and accounts.

The amendments to the Corporations Act will confirm that:
• the 2010 PPS Act will not affect a secured party’s capacity to appoint or veto the appointment of a company administrator under a transitional security agreement
• the liability of receivers and the ability of administrators to avoid liability for transactions entered into by the company before their appointment will be retained
• the existing ability of the holder of a pledge or lien to enforce is subject to the pledge or lien not being subordinate to another security interest.

UPDATE 12 May 2011: The Bill has been passed by both Houses

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