The Personal Property Securities Amendment Regulations 2011 (No. 1)
commenced on 6 October 2011.
The Regulations clarify and resolve some outstanding issues including:
- Subregulation 1.4(1A) excludes all interests, including security interests, in the relevant statutory authorities, leases, licences or permits under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth) and the Offshore Minerals Act 1994 (Cth) from the scope of the Act.
- refining the definition of “motor vehicle”: The earlier definition of ‘motor vehicle’ was too broad and had the potential to create uncertainty, in particular when considering whether personal property met the definition of motor vehicle or an accession under the Act; for example, a battery installed in a forklift may have met the definition of a ‘motor vehicle’ under 1.7(3)(b)(i). This item narrows the definition of motor vehicle but it is still wide enough to cover the various definitions of motor vehicle found in State and Territory legislation.
- excluding a lease or bailment of goods that is part of a pooling arrangement from the definition of ‘PPS Lease’
- providing secured parties, in respect of those transitional security interests in motor vehicles which were not previously registrable by serial number on State or Territory registers, a period of 24 months within which their motor vehicles would be excluded from the definition in regulation 2.1 and not be transferable free of a security interest under subsection 45(1). For example, a plough used for agricultural production may meet the definition of motor vehicle in regulation 1.7 but not all state definitions.
- clarifying the application of Corporations Act provisions to investment instruments.
