Solicitor support - smaller transactions

If you have a diversified commercial practice with an occasional need to advise clients on PPSA, then it is virtually impossible to build up the level of expertise required to provide your normal quality of service to clients.

The two most common areas where you may be called upon to advise are:
  1. Your client sells goods subject to retention of title and wishes to obtain protection under PPSA. In these circumstances, it is simplest to refer them to us and we undertake to provide a level of service which reflects well on your firm <read about our services to business>, or
  2. Your client has either sold their business on deferred terms or has financed the acquisition of assets by a debtor. In these circumstances you may well have negotiated a sale and purchase agreement, a financing agreement and a “general security agreement” using ADLS forms or similar.

The requirement in the second case is to register the security interest on PPSR and attend to any registry maintenance requirements. We are aware that many solicitors refer their client to the PPSR website so that the client can attend to registration, since the solicitor does not wish to take on the risk. For many clients, this is an unsatisfactory solution, but if you choose to complete registration on behalf of the client you need to:
  • Open an account with MED or be prepared to use your credit card online
  • Assign a person to act on behalf of the client, together with e-mail address, fax etc. If this person subsequently leaves the practice you need to amend and update the financing statement.
  • Keep secure the secured party group id and password, the financing statement PIN and debtor PIN.
  • Notify the debtor of registration under the terms of the Act
  • Manage any change demands made by the debtor
  • Monitor the financing statement for expiry and renew the statement if your client is still on risk.

At EDX we will do all of this for you at an economic fee which is simply on charged to your client as a disbursement.

We provide 2 methods for you to instruct us:

We normally recommend that the secured party nominates a person from within their organisation to be the “person acting on behalf” and to use their e-mail and fax numbers (mandatory information).

Alternatively, EDX will accept appointment to be the person acting on behalf, which means that our contact details will appear on the face of the financing statement. We will manage any change demands and alert the secured party when the financing statement is coming up for expiry – to determine whether the secured party is still on risk and whether renewal is required.

A cautionary tale…………….
Here is an example of where a little knowledge is a dangerous thing! If you have completed the ADLS forms and taken a General Security Agreement over “All present and after acquired property”, you may feel (with a degree of justification) that your job is done. If however, the security includes a motor vehicle then there are specific requirements to describe that vehicle. A failure to adequately describe the vehicle may result in it being excluded from charge – a simple “all present and after acquired” registration is not sufficient.

At EDX we are wise to the finer points and are always ready to advise our solicitor clients. <to enquire click here>