This month, we achieved a pleasing win for our clients. We were able to secure high ranking priority interests over a horse on agistment to ensure that our client’s debts were paid ahead of other creditors. This case was a reminder to prudently register livestock interests on the PPSR. All landholders who agist should implement this practice.
In the dynamic world of livestock and equine management, securing your assets and investments is paramount. The Personal Property Securities Register (PPSR) provides a robust framework for registering various types of personal property, including bloodstock, offering invaluable protection and clarity in ownership. The Morgan + English team has exceptional expertise in debt recovery and a deep understanding of the PPSR process and how it relates to bloodstock. We use this expertise to carefully draft agistment agreements which contain PPSR terms that secure your future interests, even in unexpected circumstances. We also assist clients by registering bloodstock on the PPSR.
Understanding PPSR Registration for Bloodstock
The PPSR allows individuals and businesses to register their security interests in personal property, such as livestock, thereby establishing priority in interests. You should register on the PPSR if you are sending stock out on agistment or if you are a landowner who has livestock on agistment and you wish to use the livestock as collateral for payment of agistment fees.
Registering bloodstock on the PPSR offers a crucial layer of protection in potential disputes, giving you peace of mind and facilitating smoother transactions in the future.
When to Register: If you have an interest in bloodstock, you should place a registration on the PPSR. You must have a valid security agreement in place to register on the PPSR. Timing is key when registering livestock on the PPSR. It is advisable to register your security interest as soon as possible, preferably before or at the time of acquisition. This proactive approach ensures that your interest is properly documented and prioritised, reducing the risk of competing claims from other parties.
How to Register: Registering bloodstock on the PPSR is a straightforward process which nevertheless requires attention to detail. You will need to provide accurate information about the bloodstock, including identification details, such as brands, ear tags, or microchip numbers. Our legal team stands ready to help you navigate the registration process.
Priority Interests: Section 86 of the Personal Property Securities Act 2009 (Cth) (PPSA) provides for a “super priority” interest in bloodstock, granting priority to creditors who provide essential services or inputs related to bloodstock, such as feed or agistment. This interest takes precedence over other security interests if certain conditions are met, including timely registration and compliance with PPSA regulations. This then provides a powerful tool for creditors to secure their interests in equine transactions.
Our Role in Securing your Interests
Navigating the intricacies of PPSR registration can be daunting, but with the assistance of our knowledgeable team, you can streamline the process and mitigate potential risks. Here’s how M+E can support you:
- Comprehensive Guidance: We offer comprehensive guidance on PPSR registration for bloodstock, ensuring that you understand your rights and obligations under the framework. From determining the appropriate registration category to completing the necessary paperwork, we will guide you through each step with clarity and expertise.
- Due Diligence and Compliance: PPSR registration requires strict adherence to regulatory requirements and industry standards. Our law firm conducts thorough due diligence to ensure that your registration is accurate and compliant, minimising the risk of challenges or disputes in the future. We will review documentation, verify ownership details, and address any potential issues proactively.
- Securing Future Agreements with Careful Drafting: With careful drafting, you can proactively manage risks associated with equine transactions and agreements. By incorporating provisions that address ownership rights, security interests, and dispute-resolution mechanisms, we help you establish a solid foundation for future transactions.
- Enforcing and Securing Debt Recovery: The M+E team can also assist you in debt recovery if you are owed money in relation to livestock or believe that there is a pathway to recovery debts through the sale of registered livestock.
Conclusion / Key Takeaways
In the realm of equine management, navigating the PPSR framework demands precise expertise to fortify your assets and ensure maximum protection. With our proven track record and exceptional proficiency in this specialised field, we will guide you through every step of the process with your interests as our priority. Please reach out to Laura (laura@morganenglish.com.au) and the PPSR team at M+E today!
