All about PPSR and Priorities

All about PPSR and Priorities

Personal Property Security Register (PPSR) is an online resister system which has complete details of security interest against a property. Lenders and financiers who are considered secured parties are able to register security interest on this PPSR. There is an option to search this online register PPSR to check for the details regarding security interests.

This PPSR works under the PPSAct 2009 or Personal Property Securities Act along with the administration of PPS register. Both the operation of the PPSR and the functions of the PPSR are supported by Personal Property Securities Service.

PPSR and priority rules:

Under PPS Act, registration on PPSR is considered as a form of perfection. By registration, under PPS Act is the most common form of perfection.

There are 2 main benefits of perfection by registration for secured property. They are

ppsr check

  • It can define status of the property that is security interests which are collaterally related to other security interest
  • Other thing is to ensure the security interest survives insolvency or bankruptcyof grantor. Granter here is the person who is ready to acquire the collateral and that receives the interests

The effect after registration on PPSR, upon the priority of the security interests, is also demonstrated by default priority rules. These rules are under PPS Act. They say that,

  • Over unperfected security interest, a perfected security interests always takes priority
  • When there are 2 or more perfected security interests, in this case the security interest will be determined based on giving the favor to earlier perfected security interest rather the last one
  • In case of 2 or more unperfected security interest, the determination will be done by favoring the earlier one over the later security interest

The rules under PPS Act are operating on default basis. These are subject to specific priority throughout PPS Act. For example one can find specific rules in regard to purchase money interests.


Once the application is available in registered form, it is time to enter the security interest in the PPS register by PPS registrar.

There must be a financing statement in the application. This contains details of the parties in transaction, security interest, and the collateral. In some cases, for privacy reasons, grantor’s details are not mentioned.

After the registration, verification statement will be issued by PPS registrar to secured party. This is a proof of registration. Later to the grantor, notice of verification must be given by secured party.


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