July 15, 2020
Many manufacturers and suppliers supply goods to customers on retention of title (ROT) terms ROT security interests must be registered on the Personal Property Securities Register (PPSR) If a registration is not made, and the customer enters insolvency or defaults, a supplier will have no claim to recover unpaid goods supplied on ROT terms The COVID-19 pandemic brings a heightened risk of insolvency Recent legislative changes give suppliers a longer window of opportunity for the registration of security interests in goods supplied on ROT terms Goods supplied on ROT terms It is common for manufacturers and suppliers in many Australian industries to supply goods to their customers on ROT terms. This means that while the customer takes possession of the goods, the supplier retains legal ownership of the goods until they are paid in full. Since the introduction on the Personal Property Securities Act 2009 (Cth) (PPSA), a supplier can only enforce its rights to goods supplied…