If a party provides, as security, collateral that is serial numbered (for example, a motor vehicle) the Personal Property Securities Register (PPSR) provides the secured party the opportunity to identify that collateral by its serial number. We have previously reported on the importance of ensuring your collateral is adequately described to avoid any unintended consequences caused by ambiguity arising from your collateral description. The same caution should be observed when describing collateral by its serial number.
Registration by serial number is not always mandatory to perfect a security interest (see below for the registration types which must describe property by serial number) , however it can provide added protection for the secured party as it reduces the risk of the property not being captured by the registration.
Care should be taken when entering the serial number. Typographic errors could have significant consequences for the secured party as the serial number referred to in the registration would fail to correspond with the collateral.
The following is a list of the classes of collateral which may be described by serial number in your PPSR registration:
- intangible property that is a:
- plant breeder’s right;
- trade mark; or
- licence over any intangible property mentioned in this list;
- motor vehicles; and
It is important to remember that for registrations over commercial property which is an aircraft (being an airframe, aircraft engine, helicopteror small aircraft) the registration must describe the property by serial number. Further, registrations over consumer property which is a motor vehicle, watercraft, intangible property or aircraft must also be described by serial number.
For more information, contact us.