PPSA services for overseas businesses

By: Edx  06-Dec-2011
Keywords: Personal Property, Type of Business

If you are an overseas business, bank or finance company which does not have a permanent presence in New Zealand, the chances are that you could be carrying an unintentional risk on your business in New Zealand because that PPSA issues have not been fully covered.

Perhaps the most difficult concept of PPSA is that for all practical purposes, the concept of title to goods no longer matters – your property rights can be adversely affected and the asset claimed and sold by someone else. Many business people find this concept offensive. To learn more about how PPSA can impact on your property rights

On an insolvency of the debtor it is the secured party with the most senior "security interest" in the goods which is entitled to take possession of and sell the goods – irrespective of who has legal title to the goods.

Some of the more common transactions which give rise to security interests include:

• Sale of goods subject to a retention of title or Romalpa clause

• Goods supplied on consignment

• Hire purchase agreement

• Lease or rental of equipment for more than 1 year

• Transfer of an account receivable

• Transfer of chattel paper

• Lending arrangements secured by (what were previously termed) fixed and floating charges over the assets of the debtor.

This list is not exhaustive. To be safe it is best to work on the basis that any form of credit where the debtors obligations are secured by your interest in personal property is registrable under PPSA – until you definitively know it is not!

Unless your business has a permanent and substantial presence in New Zealand, it is not worth your building the institutional knowledge, systems and procedures to manage the PPSA issues. You need expert assistance to ensure your interests are fully protected – EDX is well placed to provide that assistance. We can:

• Advise you on the PPSA issues arising from the type of business you are transacting in New Zealand.

• Recommend a solicitor who is expert in PPSA or work with your chosen solicitor to design an effective PPSA management regime.

• Provide an outsourced registration service and registry maintenance function.

• Provide advice on enforcement.

We currently act for the following types of overseas institutions

• A technology leasing company with substantial assets on lease or rental in New Zealand

• A major commercial bank which is syndicate manager for a multi bank exposure to a large New Zealand debtor.

• A financier of time share properties, which has financed New Zealand residents in to overseas time share developments.

• An equipment supplier which exports “big ticket” items to New Zealand.

The net of PPSA is deliberately cast wide – if you have any doubts about how the Act may impact on your business in New Zealand

Keywords: Personal Property, Type of Business

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Other products and services from Edx


PPSA services to NZ Banks and Finance Companies

In order to give clients greater assurance on the accuracy of registrations we have developed an automated validation method which cross checks the details entered on to PPSR against LTSA records. We provide a fully outsourced PPSR service to the syndicate manager to register new vehicles and providing the level of dealing is within the terms of the facility agreement.


PPSA and PPSR in Australia

EDX opened its first Australian offices in 2010 in preparation for this, and we are now represented in Victoria, New South Wales, Queensland and Western Australia. You cannot assume that your knowledge of the New Zealand regime will enable you to protect your position in Australia without taking expert advice. The Australians have introduced similar legislation to that in New Zealand - The Personal Property Securities Act 2009 or PPSA.


PPSR Solutions

You will need different services depending on the type of business you run, the number of debtors and the level of protection you are seeking through registration. PPSR is complex and you do not want to wade through heaps of stuff that does not apply to your business.


To register a large number of debtors on PPSR

Goods supplied under a retention of title clause, or sold on consignment.As a secured creditor you will have a “Purchased Money Security Interest” or PMSI in the goods, which under certain circumstances will have a “super priority” over all other creditors.


To register your debtors on PPSR

For goods you supply under a retention of title clause, or sell on consignment, as a secured creditor you will have a “Purchased Money Security Interest” or PMSI in the goods, which under certain circumstances will have a “super priority” over all other creditors.