UCC Article 9 & the PPSA: Vesting Assets in Australia
Author, Peter Mills, Special Counsel at Thomson Geer Lawyers
Many creditors (often being sellers or consignors of goods) register a UCC-1 Financing Statement under U.C.C. Article 9 (called “Article 9”) against their debtors. A UCC is typically filed, so that in the event the debtor files for bankruptcy protection, the creditor can recover their property and fixtures from the trustee controlling the bankruptcy.
This paper looks at how these principals apply in Australia under the Personal Property Securities Act 2009 (Commonwealth of Australia) (called “PPSA”) and the laws related to bankrupt companies, as to the rights of creditors who must perfect by registration, with case examples.
U.S. and other foreign companies who were unaware of the PPSA have already suffered loss. Creditors who deal with Australian businesses should obtain advice from Australian lawyers on their contracts involving Australian businesses, or assets located in Australia, and how to comply with the PPSA.