Commercial Law Series: PPSA Refresher on PMSIs (Paper)

Presenters:

Michael Arthur, Partner, Chapman Tripp

Steve Dukeson, Principal, Dukesons Business Law

Synopsis:

When dealing with security interests over personal property, you might think that the Personal Property Securities Act covers it all. Think again. Other property interests (such as under the Property Law Act) can apply, and there’s also the consumer credit regime to factor into the mix. To add to the complexity, the language across these three regimes is not consistent.

Using a rolling fact scenario, these materials raise your awareness of how the PPSA and some aspects of the PLA may interact (including what may be a mortgage of goods), and of some issues that commonly arise and challenges that present themselves in this area of law.

These materials will help you:

• Reflect on whether your client has a PMSI (purchase money security interest) in a particular situation.
• Enhance your knowledge about what having a PMSI means.
• Develop a better understanding of how to protect a PMSI, its limits, and maximising its effectiveness.
• Understand the importance of serial number registration.
• Gain insights into associated issues, such as cross-default and cross-collateralistion clauses, appropriation clauses, and marshalling.
• Delve into some specific issues relating to registration of financing statements.

Intended audience

Commercial lawyers at junior to intermediate level and those more senior seeking a refresher, and general practitioners who do some commercial work.