As well as changing the process for registering, searching and administering security interests, the Personal Property Securities Act sets out a new process for enforcement. Although the process has been designed to integrate with existing Credit Code and Corporations Act provisions, any one involved with enforcement and collections needs to review their procedures and forms from seizure of collateral through to post-sale accounting.
Depending on the security interest type and the collateral type secured parties may need to develop new enforcement procedures to comply with the Act. Security interests which do not secure the payment or performance of an obligation are not affected.
There is a new overarching duty imposed on secured parties that all rights, duties and obligations that arise under Chapter 4 must be exercised and discharged honestly and in a commercially reasonable manner.
Security interests provided for by security agreements made before the registration commencement time will not be affected.
