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Forge Group Vs Ge Case Study

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The PPS year in review, and why it is time for a PPS health check The Personal Property Securities Register (PPSR) commenced operations on 30 January 2012. The PPSR is the single, national register where details of security interests in personal property can be registered and searched. Time flies, and we are now approaching the fifth anniversary of the PPSR, but people are still getting things wrong. For example, who can forget one of the most well-known decisions in 2016, The Forge Group v GE? In this case, the personal property in question was four model TM 2500+ mobile gas turbine generator sets. The NSW Supreme Court decided that the lease of the turbines by GE to Forge constituted a “PPS lease”. As GE did not register its interest on the PPSR, the operation of the legislation means that GE’s …show more content…

(“Financing statement” is the data registered pursuant to an application for a registration.) To register a financing statement where the duration is between seven and 25 years, the PPSR fee is $34. A secured party can register a financing statement that has no stated end time for a fee of $119. As you can see, the cost of registration is very small, compared to the loss of a $60m security in the case of GE. In the recent years, case after case confirms the overall importance of registration and the potentially very significant consequences of failing to do so. This is a key reason why secured parties, even if is not mandated by legislation, register their security interest on the PPSR. It is therefore no surprise that there are 9,147,536 current registrations on the PPSR. As the year draws to a close, and as we prepare for another new year, this is a good time for a PPSR health check. Have you registered all your security interests? Don’t forget seize any opportunity to maximise your priority position by registering within the prescribed

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