PPSR Update January 2012

Thursday, 19 January 2012

The 30th January is the launch date of the PPS Register with all of the PPS teams working hard to get the Register operational for this deadline. But whether the January deadline is met or not, the PPS Register will be here very soon. If this is the first time you are hearing of the PPS Register, then now is the time to panic. If you are all prepared then well done. If you are like the majority and have adopted a “we’ll do something about it when it becomes reality”, then now is the time to do something.

At the very least you will need to review your exposure to the changes the PPS reforms introduce. Ideally, a full review of your systems, procedures, credit policies, documentation and even your training manuals needs to be carried out. All this needs to be done with a view to answering the question “what impact will the PPS Reforms have on me and how do I integrate it into my business?” If you lend money or are involved in the finance industry then the PPS reforms mean you'll need to work with the PPS Register to some extent. Contact me now to discuss your exposure and how you can manage it.

Watch ‘n’ Learn

Sometimes the easiest way to learn about something new is to watch a video. The PPSR team have published some good instructional video tutorials on what the PPSR Web interface looks like and how it works. Click here to see these videos. Please note that the videos for “Creating a Registration” and “Searching the PPS Register” are only relevant if you are going to manually log in to the Register via the website. These will not be relevant if you are going to use a PPS Register B2G interface from your internal Loan management System. To see how finPOWER Connect handles the PPS Register via its B2G interface, click here. As you can see, using a B2G interface is far more efficient and timely in creating your registrations.

What Will it Cost

The Attorney General has determined the Fees for using the PPSR. These will be:

  • Registration of a Security interest for less than 7 years: $7.40
  • Registration of a Security interest for less than 25 years: $37.00
  • Registration of a Security interest with no end time: $130.00
  • To Search the PPS Register: $3.70.

The above costs increase significantly (300% in some cases) if you request the Contact Centre to undertake the services for you.

Accessing the PPSR

There are two main ways you can access the new PPSR Register. The Register itself is setup to be totally electronic so manual forms are discouraged. Access is gained either via the web, or via a PPSR B2G interface. The B2G Interface is designed to allow the seamless integration between your internal system and the PPS Register by having the two systems talk to each other electronically. This allows data that has already been entered into your system to be electronically sent to the PPS Register, with the Security Interest registered and the Registration Number returned to your system all at the push of a button. The benefits of this are numerous, not the least of them being that of accuracy. For example, 17 digit VIN numbers are the primary identifiers of motor vehicles and if you transpose a single digit then your Registration is not “Perfected” and therefore open to challenge. The other benefit is that of speed. The PPS Register is a “Point in Time” Register meaning that the first Registration against a collateral item has priority over later Registrations. The faster you can get your registration onto the PPS Register the better. PPS Register searches can also be performed via the B2G interface.

The second method of accessing the PPS Register is via the Web interface. Once this Web portal is opened, individual Users can log on and manually enter their Registrations. This will involve manually re-keying Collateral item details as well as all the Grantor details. Accuracy will be key as errors could invalidate Registrations or involve costly amendments. Once a Registration is complete the details will need to be printed and stored and any Searches will also have to be entered manually.