If you are an overseas business, bank or finance company which does not have a permanent presence in New Zealand, the chances are that you could be carrying an unintentional risk on your business in New Zealand because that PPSA issues have not been fully covered.
Perhaps the most difficult concept of PPSA is that for all practical purposes, the concept of title to goods no longer matters – your property rights can be adversely affected and the asset claimed and sold by someone else. Many business people find this concept offensive. To learn more about how PPSA can impact on your property rights < click here >
On an insolvency of the debtor it is the secured party with the most senior "security interest" in the goods which is entitled to take possession of and sell the goods – irrespective of who has legal title to the goods.
Some of the more common transactions which give rise to security interests include:
This list is not exhaustive. To be safe it is best to work on the basis that any form of credit where the debtors obligations are secured by your interest in personal property is registrable under PPSA – until you definitively know it is not!
Unless your business has a permanent and substantial presence in New Zealand, it is not worth your building the institutional knowledge, systems and procedures to manage the PPSA issues. You need expert assistance to ensure your interests are fully protected – EDX is well placed to provide that assistance. We can:
We currently act for the following types of overseas institutions
The net of PPSA is deliberately cast wide – if you have any doubts about how the Act may impact on your business in New Zealand <enquire now>