The Personal Property Securities Act 1999 has replaced your rights under the old romalpha or retention of title, and repossession clauses.
It has made it much easier and cheaper for you to retain an interest in goods that you sell under the Personal Property Securities Act.
If you have a security interest in goods supplied then:
- You have a super priority in goods over a receiver or liquidator which means you can still get your goods back.
- You have powerful rights of enforcement, including rights of entry into your clients premises and removal of your goods.
- If your client has converted your goods into something else then you have an interest in the converted goods.
- If your client has on sold your goods you can claim the proceeds.
- You may have a defence against a voidable preference claim from a liquidator.
- You may find your clients asking to pay you when they are trying to sell their assets and bail out from their business.
If you are a supplier of goods you do not need to register every transaction. You simply register your security interest once (a PMSI) and the registration lasts for up to 5 years.