S123 Ppsa -

Without a valid registration, you cannot repossess the collateral. If the grantor defaults, you cannot simply show up and take back the machinery, vehicle, or inventory. You would need to go through expensive and slow unsecured court proceedings.

At the heart of Australia’s personal property securities regime lies the Personal Property Securities Act 2009 (Cth) (PPSA). Within this extensive legislation, stands out as a critical provision. It acts as the primary rule for resolving priority disputes where the legislation does not otherwise provide a specific rule. s123 ppsa

Under the PPSA, if a security interest is unperfected (which includes having an invalid registration due to s123), and the grantor goes into insolvency, the collateral in the grantor. In practical terms, the asset you thought you owned legally becomes part of the insolvent estate, and you lose all rights to it. Without a valid registration, you cannot repossess the

S123 does not operate in a vacuum. It interacts closely with: At the heart of Australia’s personal property securities