SELLING AGRICULTURAL GOODS AND REGISTERING A PERSONAL PROPERTY SECURITY INTEREST
It is common to sell agricultural products on terms that payment shall occur at a later date. A risk is the possibility of the buyer becoming bankrupt before you are paid. Where a person becomes bankrupt secured persons, such as a bank with a registered
mortgage will always receive payment before unsecured creditors. It is possible to become a secured creditor and this can be done by registering the debt on the Personal Property Securities Register giving your debt a higher level of priority over unsecured debtors.
HOW DO YOU EFFECTIVELY REGISTER A SECURITY INTEREST
The following steps need to be taken:
(1) Have a written agreement with the buyer that grants you the right to retain title in your produce until you receive payment AND a
right to register a security interest on the Personal Property Securities Register. If required Peacockes can assist with preparing
such an Agreement. The agreement will need:
• The full and correct legal name of the buyer of your produce;
• The buyer’s ABN (where they have one); and
• The date of birth of the buyer (but only where the buyer is an individual or a partnership of individuals).
(2) Ensure that the written security agreement is completed and signed before delivering your goods to the buyer.
(3) Register your interest electronically on the Personal Property Securities Register at https://www.ppsr.gov.au/ Peacockes can
also assist you with that process.
Call Geoff Yeo at Peacockes Solicitors if you wish to develop a registerable agreement or register a security interest for goods you have sold.