PPSA services to NZ Banks and Finance Companies

By: Edx  06-Dec-2011

As a New Zealand bank or finance company, you will by now be fully familiar with PPSR and will have developed your own processes for registration. If everything is running smoothly and efficiently – congratulations! If not, please consider how EDX can benefit your business:

1. Automation

2. Validation of vehicle details against Land Transport Safety Authority (LTSA) records

3. Specialised PPSR management for complex or syndicated deals.

When PPSR first came in, you may have lacked the volume of transactions to warrant building your own link in to PPSR. For users like you we developed our Securities Information Database (SID) which gives all the “touch and feel” of a direct link in to PPSR at a fraction of the cost.

SID enables online registration, amendment, discharge and renewal of financing statements and holds all registration details in a fully searchable database. You may expect to see substantial productivity gains and improved risk management from using SID.

Additionally, for customers who have been manually registering for some time we can obtain full details of all your current registrations and “pre-populate” SID so as to give a confirmed opening position for ongoing registry maintenance purposes. Please contact us and we will meet with you to assess your needs and how EDX can best assist

We all know that there is significant risk in entering vehicle details on to PPSR and that the consequences of getting it wrong may be that your security is invalidated. The two major areas of risk are:

• Mistakes in the VIN

• Registration plate change

Even where there is diligent rechecking of information, the error rate can be unacceptably high. From work we have completed for reputable clients we have established an average error rate of 25-30%

Common mistakes with VIN numbers include the operator entering:

“0” instead of “O”

“Z” instead of “2”

“Z” instead of “S”

“5” instead of “S”

“1” instead of “l” etc.

Such mistakes are almost impossible to identify with a visual check – an automated solution is required.

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. A major advantage for our clients is that data is sourced direct from the Ministry of Economic Development and there is no impact in your environment.

The output is a report which lists vehicles under the following headings:

• NF – not found in LTSA which is normally an error in the registration number entered in to PPSR.

• VIN – VIN mismatch between the number entered in to PPSR and the LTSA record.

• VA – successfully validated against LTSA, which gives you the assurance that your PPSR registrations are correct for VIN and registration number

The report will also give the debtor name and (if recorded) a debtor reference.

This enables you to process amendments through your chosen PPSR registration method, quickly and efficiently.

If you are a high volume user with your own G2B link direct in to PPSR, the chances are that your system was designed to accommodate a “typical” business profile. When something out of the ordinary comes up, this is where EDX can come in to its own.

As an example, we act for the syndicate manager of a banking consortium with a large New Zealand exposure. The debtor company frequently buys and sells vehicles in normal course of business within limits set in the facility agreement. 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, to discharge sold vehicles. Periodic reports are provided back to the syndicate manager for audit purposes.

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Other products and services from Edx


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

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To register a large number of debtors on PPSR

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