To clearly understand the benefits of using PPSR Cloud, here are some real-life examples of those who have tried to register their security and still lost out. For privacy reasons, we’ve changed the company names.
Case 1 - Registration Renewal
Ozi Fuels is a fuel distributor that also provides customers with large fuel storage tanks. These tanks are generally located on the customer’s property.
Ozi Fuels were complying with the PPSA and had correctly registered their interest in the fuel tanks. However, work got busy for Ozi and they didn’t notice their PPS registrations were about to expire.
Remember the PPS Register provides no reminder of registrations expiring.
When their customer, Outwest Goldmine, collapsed Ozi realised their registrations had expired and so did Outwest’s voluntary administrator.
Because Ozi didn’t have a PPS registration in place when Outwest collapsed, their tanks legally became the property of Outwest Goldmine and therefore were under the administrator’s control.
If Ozi Fuels had received a reminder notice to renew their registration, they would have retained ownership of the storage tanks. Instead, they lost a large asset and many thousands of dollars.
PPSR Cloud provides 6 months’ notice of your registration’s impending expiration so you have plenty of time to assess whether your registration needs to be renewed. PPSR Cloud’s ‘traffic light’ expiration alert ensures you always know when your registrations are due for renewal.
For perfect peace of mind just set PPSR Cloud’s ‘auto renew’ function, ensuring critical PPS registrations are automatically renewed
Case 2 - Grantor Identification
Alleasing had a large steel manufacturing client who leased several expensive machines off them. In 2016, and without warning, One Steel collapsed into insolvency. Alleasing were complying with the PPSA and had registered their interest in their equipment on the PPSR.
While the machinery was now in the possession of the administrator, Alleasing were confident their registration was in order and they would have full rights to their machinery.
When Alleasing originally lodged their registration, they identified One Steel by its ABN.
When the court case commenced, the administrators argued that Alleasing’s PPS registration was invalid and they should retain Alleasing’s equipment (worth many millions of dollars). The Court agreed.
Alleasing should not have used One Steel’s ABN but instead should have used their ACN. This simple and innocent mistake cost Alleasing Co many millions.
PPSR Cloud will not let this happen. PPSR Cloud searches your customer’s details and will not allow a registration by ABN where an ACN exists.
Case 3 - Grantor Identification
QLT Finance had recently financed a very expensive motor vehicle and decided to take security over the vehicle by registering security over their customer.
The customer, High-Profile VIP Pty Ltd acted as trustee for the VIP trust.
When performing their registration, QLT Finance identified their client using the ACN of High-Profile VIP Pty Ltd, the trustee.
This was a costly mistake for QLT Finance as they should have registered security against the VIP Trust, using the trust’s ABN and not the trustees ACN.
The registration was determined to be ineffective and QLT Finance lost any chance of claiming the vehicle and recovering their money.
When performing a PPS registration, PPSR Cloud will search the ACN of your customer and identify if it also has an ABN. You will be alerted where there is no ABN as this could be an indicator your customer is acting in a trustee capacity.
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