Should you find yourself in a situation where you believe you have a vehicle with a Security Interest on PPSR that should have been previously removed and is incorrect, you may wish to serve the Secured Party with a demand to Discharge the Security Interest.

The following pro forma letter has been constructed by Dealer Solutions as a result of research and our own independent legal advice however it is only to be used in a situation where you believe that the Collateral no longer secures any obligation to the Secured Party (including a payment).

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I/we [Insert your business name here] demand that you, the Secured Party nominated on the attached Statement and as outlined below, amend and immediately remove the registration from the following Collateral;

If this matter is not resolved within five (5) business days from the date of this demand we reserve the right to proceed with submitting the amendment request to the Registrar without further notice to you in accordance with PPSA, Section 181. Furthermore, we reserve the right to proceed with judicial process or legal action as outline in PPSA, Section 182.

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These words should be presented on your company letterhead and include an attachment of the Statement as mentioned in the letter.

Please note that these words are specific to the situation where you have evidential proof that a Security Interest should have previously been removed and the Collateral no longer secures any obligation (including payment).

You should only use this pro forma letter after reading and agreeing to the Dealer Solutions Terms and Conditions. If you require PPSR information specific to your business requirements or circumstances, please contact Holding Redlich.

When creating a registration in relation to a security interest, an option is given to tick a box stating that “current assets are subject to control”.

The PPS Regulations prescribe that for collateral which is commercial property, the financing statement needs to indicate whether or not the collateral is subject to control for Part 9.5 of the PPSA. Part 9.5 of the PPSA contains special rules relating to fixed and floating charges created prior to the commencement of the PPSA.

If you are not registering a security interest on the PPS Register in relation to a fixed and floating charge created prior to the commencement of PPSA, it would generally be appropriate not to tick this box as the rules in Part 9.5 of the PPSA are likely to be inapplicable.

If you require PPSR information specific to your business requirements, please contact Holding Redlich on the numbers to the right.

The National PPSR Service Centre has responded to our enquiry and advised that;

“The PPS Register is a noticeboard of security interests. We do not maintain nor manage the registered interests on the system. That is the responsibility of the secured party.”

Based on this response, our advice is that any Security Interest on the PPS Register should be treated as a current interest regardless of information you have that states otherwise.

If you believe that a Secured Party has a Security Interest on the register that is invalid or incorrect, you should contact the Secured Party as shown on the Search Certificate and request for the Security Interest to be amended or removed (Discharged) from the PPS Register.

You do not need to create an account with the Govenment, or anyone else, for PPSR if you currently use Dealer Solutions.

By now you should also have reviewed your Sales Contracts and internal proceedures to ensure that you are ready for the changes on January 30th 2012. Click Here to watch our short presentation on other things for Dealers to consider for PPSR or Click Here to view the complete list of PPSR Tutorials.

If you need help with PPSR, would like to use Dealer Solutions for PPSR or are an existing customer wanting to be set up as a Secured Party, please call us on 1300 66 11 33 or Click Here to Apply Online

These revised Sales Contracts will be available in Dealerlogic from January 30th 2012

REVS will be searchable over this migration weekend. Certificates issued will be watermarked to note that they are only current as at 5pm on Friday, 27 January 2012 (Qld time).

Queensland Motor Dealers must still provide REVS Certificates for sales made on Saturday January 28th.

From Monday January 30th Queensland Motor Dealers should search the PPS Register. Click here to sign up for PPSR Protection now!

Yes – Both new and used vehicles are caught by the PPS regime. A motor vehicle is a type of personal property that can potentially have a security interest registered against it.
Failure to ensure that security interests have been removed over vehicles sold to customers will expose a dealer to potential damages claims. As noted above, it is therefore prudent for dealers to obtain a clear PPS search before selling a vehicle and to provide it to customers to satisfy any queries they may have regarding title to the vehicle.

Dealer Solutions Opinion – Dealers should perform a PPSR search and ensure that vehicles are clear prior to sale.