How does the PPSA impact your business? - NAB

Scenario 4
Storage of goods or stock
In addition to the other considerations previously
mentioned, there may be registrable security interests
created by storage arrangements. Where a party
(‘storage provider’) holds goods on behalf of another
(‘owner’) under a commercial storage arrangement for
more than 12 months (non-serial numbered goods),
90 days or more (serial numbered goods) or an
indefinite period, the owner’s ownership interest is a
security interest in the goods for the purposes of PPSA.
This means that the ownership interest could be
extinguished on the insolvency of the storage provider
if it is not registered.
This should be borne in mind in a number of business
arrangements, including:
• Storage of grain by a bulk handler where the owner
of the grain may need to register against the
storage provider;
• Storage of food or beverages at a distribution
warehouse facility (if the occupier of the facility is
not the owner of the food or beverages) where the
owner may need to register against the occupier of
the facility.
A bank may therefore require the owner of these
various items to effect the relevant registrations.
Important Information:
This brochure contains general information about
personal property securities. It does not constitute legal
advice and does not purport to contain all relevant
information regarding the Personal Property Securities
Act (PPSA). NAB recommends that you seek legal advice
about the implications of the PPSA to your individual
circumstances before acting on the information given
in this brochure.
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